In 2020 Borger Industries had beginning inventory of $106,000,purchases of $1,126,500,ending inventory of $116,000,accounts payable of $49,605,and sales of $2,147,250.Inventory turnover for 2017 was closest to
A)9.625.
B)10.06.
C)10.15.
D)10.53.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold (COGS) divided by Average Inventory. COGS is calculated as Beginning Inventory + Purchases - Ending Inventory. For Borger Industries, COGS = $106,000 + $1,126,500 - $116,000 = $1,116,500. Average Inventory = ($106,000 + $116,000) / 2 = $111,000. Therefore, Inventory Turnover = $1,116,500 / $111,000 ≈ 10.06.

In 2020 Borger Industries Had Beginning Inventory of $106,000,purchases of $1,126,500,ending