The following information pertains to Barkley Company.: $\begin{array}{lr}
\text { Merchandise purchased } & \$ 1,800,000 \
\text { Cost of goods sold } & \$ 2,000,000 \
\text { Inventory at the end of the year } & \$ 400,000
\end{array}$ The inventory turnover ratio for the year was
A)10.
B)5.
C)4.
D)3.6.

Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2= (0 + 400,000) / 2= 200,000Inventory turnover ratio = 2,000,000 / 200,000= 10

The Following Information Pertains to Barkley Company The Inventory Turnover Ratio for the Year Was A)10

The Following Information Pertains to Barkley Company The Inventory Turnover Ratio for the Year Was
A)10