Financial statements for Maraby Corporation appear below:

-Maraby Corporation's inventory turnover for Year 2 was closest to:
A) 11.2
B) 7.8
C) 9.4
D) 13.5

Name: Financial statements for Maraby Corporation appear below: -Maraby Corporation's inventory turnover for Year 2 was closest to: A) 11.2 B) 7.8 C) 9.4 D) 13.5
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Question

Financial statements for Maraby Corporation appear below:
  
-Maraby Corporation's inventory turnover for Year 2 was closest to:
A) 11.2 
B) 7.8 
C) 9.4 
D) 13.5

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold ÷ Average inventory balance = $1,370 ÷ $145* = 9.4 (rounded)
*Average inventory balance = ($140 + $150) ÷ 2 = $145

Financial Statements for Maraby Corporation Appear Below