Solve the problem.
-A furniture store has an average inventory of $5,398 at retail, and an average inventory of $3,757 at cost. The cost of goods sold for the same period is $26,073.58 and sales of furniture were $37,246.20. Find (a)Stock turnover at cost, and (b)stock turnover at retail. Round to the nearest hundredth.
A)(a)1.44, (b)1.43
B)(a)6.90, (b)6.94
C)(a)6.94, (b)6.90
D)(a)4.83, (b)9.91

Question

Quizplus · Accepted Answer

Stock turnover at cost = Cost of Goods Sold / Average Inventory at Cost = $26,073.58 / $3,757 ≈ 6.94. Stock turnover at retail = Sales / Average Inventory at Retail = $37,246.20 / $5,398 ≈ 6.90.

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