If a firm's inventories on hand are $200,000 and its cost of goods sold is $600,000, what is the inventory turnover?
A)2.0 times
B)3.0 times
C)4.0 times
D)5 0.33 times

Name: If a firm's inventories on hand are $200,000 and its cost of goods sold is $600,000, what is the inventory turnover? A)2.0 times B)3.0 times C)4.0 times D)5 0.33 times
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Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the cost of goods sold by the average inventory. Here, $600,000 / $200,000 = 3.0 times.

If a Firm's Inventories on Hand Are $200,000 and Its