If beginning and ending inventories are $20,000 and $30,000,respectively,and cost of goods sold is $400,000,what is the inventory turnover ratio?
A)18
B)16
C)15.5
D)15

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated as Cost of Goods Sold divided by the average inventory. The average inventory is ($20,000 + $30,000) / 2 = $25,000. Therefore, the inventory turnover ratio is $400,000 / $25,000 = 16.

If Beginning and Ending Inventories Are $20,000 and $30,000,respectively,and Cost