Garrett Corporation had sales of $6,000,000,cost of sales of $4,200,000,and average inventory of $900,000.Garrett's inventory turnover ratio for the period is closest to:
A)4.7 times
B)2.0 times
C)6.7 times
D).15 times

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated as Cost of Sales divided by Average Inventory. For Garrett Corporation, it is $4,200,000 / $900,000 = 4.67, which is closest to 4.7 times.

Garrett Corporation Had Sales of $6,000,000,cost of Sales of $4,200,000,and