Waters Department Store had net credit sales of €16,000,000 and cost of goods sold of €10,000,000 for the year. The average inventory for the year amounted to €2,000,000. Inventory turnover for the year is
A) 8 times.
B) 10 times.
C) 5 times.
D) 4 times.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Therefore, €10,000,000 / €2,000,000 = 5 times.

Waters Department Store Had Net Credit Sales of €16,000,000 and Cost