Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory = ($26,000 + $24,000) / 2 = $25,000

Inventory turnover = $290,000 / $25,000 = 11.6

Therefore, the answer is B) 11.60.

Harris Corporation, a Retailer, Had Cost of Goods Sold of $290,000