A company's cost of goods sold was $15,500 and its average merchandise inventory was $4,500. Its inventory turnover equals 3.4.

Name: A company's cost of goods sold was $15,500 and its average merchandise inventory was $4,500. Its inventory turnover equals 3.4.
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Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory
Inventory turnover = $15,500 / $4,500 = 3.4 (given)
Since the formula for inventory turnover matches the numbers given in the question, the answer is true (A).

A Company's Cost of Goods Sold Was $15,500 and Its