Refer to the information provided for Pham Enterprises. What is the company's inventory turnover ratio for 2013?

Question

Quizplus · Accepted Answer

The inventory turnover ratio for 2013 can be calculated as cost of goods sold divided by average inventory. Using the information provided, we have cost of goods sold of $728,000 and average inventory of $119,000 (($130,000 beginning inventory + $108,000 ending inventory) / 2). Therefore, the inventory turnover ratio is 6.108 (728,000 / 119,000).

Refer to the Information Provided for Pham Enterprises