Zebra Inc. cost of goods sold for the year is $1,900,000 and average merchandise inventory for the year is $129,000. Calculate the inventory turnover ratio of the company.

Name: Zebra Inc. cost of goods sold for the year is $1,900,000 and average merchandise inventory for the year is $129,000. Calculate the inventory turnover ratio of the company.
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Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventory
= $1,900,000 / $129,000
= 14.73 times. Therefore, the best answer is B.

Zebra Inc Cost of Goods Sold for the Year Is $1,900,000