Zhang Company reported Cost of goods sold of $835,000,average Inventory of $41,750,and Net sales of $2,338,000.The Inventory turnover ratio is:

Name: Zhang Company reported Cost of goods sold of $835,000,average Inventory of $41,750,and Net sales of $2,338,000.The Inventory turnover ratio is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventory

= $835,000 / $41,750

= 20 times.

Therefore, the best answer is C, as it correctly calculates the inventory turnover ratio.

Zhang Company Reported Cost of Goods Sold of $835,000,average Inventory