The following information was taken from the records of Kane Company: $\begin{array}{lc}
\text { Beginning inventory } & \$ 135,000 \
\text { Encling inventory } & 150,000 \
\text { Net crecdit sales } & 1,440,000 \
\text { Cost of goods sold } & 810,000 \
\text { Net income } & 112,500
\end{array}$ Given this information, Kane's inventory turnover is

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2= (135,000 + 150,000) / 2= 142,500Inventory turnover = 810,000 / 142,500= 5.68

The Following Information Was Taken from the Records of Kane