CDE reported the following 2014 data in 000s: CDE's inventory turnover for 2014 was:

Name: CDE reported the following 2014 data in 000s: CDE's inventory turnover for 2014 was:
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Question

CDE reported the following 2014 data in 000s:  CDE's inventory turnover for 2014 was:

Quizplus · Accepted Answer

Inventory turnover is calculated as the cost of goods sold divided by the average inventory. In this case, we have the cost of goods sold as $375,000 and the average inventory as $125,000 (($140,000 + $110,000)/2). Thus, the inventory turnover is 3 times ($375,000/$125,000). Therefore, option C is the correct answer.

CDE Reported the Following 2014 Data in 000s: CDE's