Harbor Company,a retailer,had cost of goods sold of $170,000 last year.The beginning inventory balance was $20,000 and the ending inventory balance was $24,000.The company's inventory turnover was closest to:

Question

Quizplus · Accepted Answer

Average inventory balance = ($20,000 + $24,000)F1F1F1S1F1F1F10 2 = $22,000
Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $170,000 F1F1F1S1F1F1F10 $22,000 = 7.73

Harbor Company,a Retailer,had Cost of Goods Sold of $170,000 Last