Cromwell Company began the year with a balance in inventory of $110,000 and ended the year with a balance of $102,000.The net sales for the year were $983,000 with a gross profit on sales of $295,000.What was the inventory turnover ratio?
A)2.78
B)9.27
C)6.49
D)2.89

Question

Quizplus · Accepted Answer

Inventory turnover ratio (6.49) = Cost of goods sold ($983,000 - $295,000) F1F1F1S1F1F1F10 Average inventory ($110,000 + $102,000) F1F1F1S1F1F1F10 2

Cromwell Company Began the Year with a Balance in Inventory