Match each of the following terms with the appropriate formulas.
-$\frac{\text {Cost of goods sold }}{\text {Average inventory }}$

A)Days' sales in inventory
B)Dividend yield
C)Total asset turnover
D)Inventory turnover
E)Return on common stockholders' equity
F)Gross margin ratio
G)Days' sales uncollected
H)Profit margin ratio
I)Times interest earned
J)Debt ratio

Question

Match each of the following terms with the appropriate formulas.
-$\frac{\text {Cost of goods sold }}{\text {Average inventory }}$

A)Days' sales in inventory
B)Dividend yield
C)Total asset turnover
D)Inventory turnover
E)Return on common stockholders' equity
F)Gross margin ratio
G)Days' sales uncollected
H)Profit margin ratio
I)Times interest earned
J)Debt ratio

Quizplus · Accepted Answer

The formula $\frac{\text {Cost of goods sold }}{\text {Average inventory }}$ is used to calculate the Inventory Turnover, which measures how many times a company's inventory is sold and replaced over a period.

Match Each of the Following Terms with the Appropriate Formulas Cost of goods sold Average inventory \frac{\text {Cost of goods sold }}{\text {Average inventory }}Average inventory Cost of goods sold ​

Match Each of the Following Terms with the Appropriate Formulas $\frac{\text {Cost of goods sold }}{\text {Average inventory }}$