Harton Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $20,000,and the ending inventory balance was $22,000.The company's inventory turnover was closest to which of the following?

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory

Average inventory = (Beginning inventory + Ending inventory) / 2
= ($20,000 + $22,000) / 2
= $21,000

Inventory turnover = $250,000 / $21,000
= 11.90 times (rounded to two decimal places)

Therefore, the closest option is C) 11.90 times.

Harton Company,a Retailer,had Cost of Goods Sold of $250,000 Last