Quickline Industries has a cost of goods sold of $1,900,000.The beginning and ending merchandise inventories are $133,000 and $125,000,respectively.Quickline Industries inventory turnover ratio is:

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated as Cost of Goods Sold divided by the average inventory. The average inventory is ($133,000 + $125,000) / 2 = $129,000. Therefore, the inventory turnover ratio is $1,900,000 / $129,000 = 14.7 times.

Quickline Industries Has a Cost of Goods Sold of $1,900,000