Selected financial data for Bragg Company appear below:
-Bragg Company's inventory turnover ratio for Year 2 was closest to:
A)2.00
B)2.67
C)4.80
D)4.00

Question

Selected financial data for Bragg Company appear below: 
-Bragg Company's inventory turnover ratio for Year 2 was closest to:
A)2.00 
B)2.67 
C)4.80 
D)4.00

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance = $80,000 F1F1F1S1F1F1F10 $30,000* = 2.67
*Average inventory balance = ($40,000 + $20,000)F1F1F1S1F1F1F10 2 = $30,000

Selected Financial Data for Bragg Company Appear Below