Sparky's sells auto parts. Provided below is selected financial information from the company's 2012 annual report:
$\begin{array}{lll}
\underline{\text { Sparky's Selected Fimancial Statementdata }} \
\text { Fiscal year end } & \mathbf{2 0 1 2} & \mathbf{2 0 1 1} \
\text { (amounts in thousands of dollass) } & \
\text { Net sales } & \$ 125,410 & \$ 106,380 \
\text { Cost of GoodsSold } &-104,090 & -89,359 \
\text { GrossProfit } & \$ 21,320 & \$ 17,021\
\
\text { Inventory}& \$ 31,353 & \$ 30,850
\end{array}$
-
Using Sparky's financial information what is the company's inventory turnover ratio for 2012?
A) 0.69
B) 1.00
C) 3.35
D) 4.03

Question

Sparky's sells auto parts. Provided below is selected financial information from the company's 2012 annual report:
$\begin{array}{lll}
\underline{\text { Sparky's Selected Fimancial Statementdata }} \
\text { Fiscal year end } & \mathbf{2 0 1 2} & \mathbf{2 0 1 1} \
\text { (amounts in thousands of dollass) } & \
\text { Net sales } &  \$ 125,410 & \$ 106,380  \
\text { Cost of GoodsSold } &-104,090 & -89,359 \
\text { GrossProfit } & \$ 21,320 & \$ 17,021\
\
\text { Inventory}& \$ 31,353 & \$ 30,850
\end{array}$
-
 Using Sparky's financial information what is the company's inventory turnover ratio for 2012?
A) 0.69
B) 1.00
C) 3.35
D) 4.03

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2= (30,850 + 31,353) / 2= 31,101.5Inventory turnover ratio = 104,090 / 31,101.5= 3.35

Sparky's Sells Auto Parts - Using Sparky's Financial Information What Is the Company's

Sparky's Sells Auto Parts -
Using Sparky's Financial Information What Is the Company's