Cost of goods sold for 2017 was $250,000 while net sales amounted to $575,000.On January 1,2017,inventory was $150,000,and on December 31,2017,inventory was $175,000.Inventory turnover for 2017 was:

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Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2= ($150,000 + $175,000) / 2= $162,500Inventory turnover = $250,000 / $162,500= 1.54

Cost of Goods Sold for 2017 Was $250,000 While Net