Zhang Company reported Cost of goods sold of $835,000 and average Inventory of $41,750.The Inventory turnover ratio is:
A)0.5 times.
B)418 times.
C)20 times.
D)56 times.
E)19 times.

Question

Quizplus · Accepted Answer

Inventory turnover ratio is calculated by dividing cost of goods sold by average inventory. 
Inventory turnover ratio = Cost of goods sold / Average inventory 
= 835,000 / 41,750 
= 20 times

Zhang Company Reported Cost of Goods Sold of $835,000 and Average