Dieringer Corporation's most recent balance sheet and income statement appear below:
-The inventory turnover for Year 2 is closest to:
A)1.25
B)9.89
C)11.13
D)0.80

Question

Dieringer Corporation's most recent balance sheet and income statement appear below:  
-The inventory turnover for Year 2 is closest to:
A)1.25 
B)9.89 
C)11.13 
D)0.80

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $890 F1F1F1S1F1F1F10 $90* = 9.89
*Average inventory balance = ($80 + $100)F1F1F1S1F1F1F10 2 = $90

Dieringer Corporation's Most Recent Balance Sheet and Income Statement Appear