Below is financial information for two sporting goods retailers. Extreme Sports Company operates a retail business and franchising business. At the end 2007, Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores. Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states. All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores. Selected Data for All Sports and Extreme Sports
(amounts in millions)
Calculate All Sports' inventory turnover ratio

Question

Below is financial information for two sporting goods retailers. Extreme Sports Company operates a retail business and franchising business. At the end 2007, Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores. Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states. All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores. Selected Data for All Sports and Extreme Sports
(amounts in millions)
 Calculate All Sports' inventory turnover ratio

Quizplus · Accepted Answer

The formula for calculating inventory turnover ratio is Cost of Goods Sold / Average Inventory. Cost of Goods Sold for All Sports is $3,240 and their Average Inventory is $826, so their inventory turnover ratio is 3,240/826 = 3.9.

Below Is Financial Information for Two Sporting Goods Retailers