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Nelly Inc. reported net credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year. The average inventory for the year was $6,000,000.
-The inventory turnover ratio for the year was
A) 3.0 times.
B) 33.3 times.
C) 4.0 times.
D) 25.0 times.

Question

Quizplus · Accepted Answer

Inventory turnover ratio = Net credit sales / Average inventory= $24,000,000 / $6,000,000= 4.0 times

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