Topiary's Unlimited has a cost of goods sold of $1,900,000.The beginning merchandise inventory was $125,000 and its ending merchandise inventory is $133,000.Topiary's merchandise inventory turnover ratio is:

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Quizplus · Accepted Answer

The merchandise inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. Average inventory is calculated as (Beginning Inventory + Ending Inventory) / 2. So, for Topiary's Unlimited, the average inventory is ($125,000 + $133,000) / 2 = $129,000. The cost of goods sold is $1,900,000. Therefore, the inventory turnover ratio is $1,900,000 / $129,000 = 14.7 times.

Topiary's Unlimited Has a Cost of Goods Sold of $1,900,000