Exhibit 19-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You are provided with the following information for a company. $\begin{array}{llcc}
\text { Net Annual Sales } &60000\
\text { Average Receivables } &1200\
\text { COGS } &35000\
\text { Average Inventory } &3000\
\text { Average Trade Payables } &1500\
\end{array}$

-Refer to Exhibit 19-3. Calculate the inventory turnover ratio.
A) 27.23
B) 23.3
C) 55.43
D) 8.67
E) 11.67

Question

Exhibit 19-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You are provided with the following information for a company. $\begin{array}{llcc}
 \text { Net Annual Sales } &60000\
 \text { Average Receivables  } &1200\
 \text {  COGS } &35000\
 \text { Average Inventory } &3000\
 \text { Average Trade Payables } &1500\
\end{array}$

-Refer to Exhibit 19-3. Calculate the inventory turnover ratio.
A) 27.23
B) 23.3
C) 55.43
D) 8.67
E) 11.67

Quizplus · Accepted Answer

The inventory turnover ratio is calculated as COGS divided by Average Inventory: $ \frac{35000}{3000} = 11.67 $.

Exhibit 19-3 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 19-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)