Excerpts from Tigner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,230 and the cost of goods sold was $820.
-The inventory turnover for Year 2 is closest to:
A)0.86
B)1.17
C)6.31
D)6.83

Question

Excerpts from Tigner Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,230 and the cost of goods sold was $820.
-The inventory turnover for Year 2 is closest to:
A)0.86 
B)1.17 
C)6.31 
D)6.83

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $820 F1F1F1S1F1F1F10 $130* = 6.31
*Average inventory balance = ($120 + $140)F1F1F1S1F1F1F10 2 = $130

Excerpts from Tigner Corporation's Most Recent Balance Sheet Appear Below