Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures. What is the inventory turnover for this corporation? Round your answer to one decimal place.
A) 1.2 times
B) 1.6 times
C) 2.4 times
D) 4.0 times

Question

Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures.   What is the inventory turnover for this corporation? Round your answer to one decimal place.
A) 1.2 times 
B) 1.6 times 
C) 2.4 times 
D) 4.0 times

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory
= 3,800 / ((1,800 + 1,000) / 2)
= 2.4 times (rounded to one decimal place)

Following Are the Financial Statements for Starman Corporation for the Year