Blooming Gardens has an inventory turnover of 16.This means the firm:
A)sells its entire inventory every 16 days.
B)stocks its inventory only every 16 days.
C)buys 16 days of inventory with each order.
D)sells its inventory by granting customers 16 days' credit.
E)sells its inventory an average of 16 times each year.

Question

Quizplus · Accepted Answer

Inventory turnover ratio measures how many times a company sells its inventory during a specific period (usually a year). A turnover ratio of 16 means that Blooming Gardens sells its inventory an average of 16 times each year.

Blooming Gardens Has an Inventory Turnover of 16