The following information pertains to Barkley Company:
The inventory turnover ratio for the year was

A) 10.
B) 5.
C) 4.
D) 3.6.

Name: The following information pertains to Barkley Company: The inventory turnover ratio for the year was A) 10. B) 5. C) 4. D) 3.6.
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Question

The following information pertains to Barkley Company: 
The inventory turnover ratio for the year was

A) 10. 
B) 5. 
C) 4. 
D) 3.6.

Quizplus · Accepted Answer

4 = $2,000,000 / $500,000
 
Calculate Beginning Inventory = X + $1,800,000 - $2,000,000 = $400,000; X = $600,000
Average Inventory ($600,000 + $400,000) / 2 = $500,000

The Following Information Pertains to Barkley Company