Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below:

-Refer to the Sculley Corporation information above.Sculley's merchandise inventory turnover for 2014 is
A) 3.43.
B) 5.68.
C) 6.63.
D) 6.79.

Question

Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below:
  
-Refer to the Sculley Corporation information above.Sculley's merchandise inventory turnover for 2014 is
A) 3.43. 
B) 5.68. 
C) 6.63. 
D) 6.79.

Quizplus · Accepted Answer

Merchandise inventory turnover = Cost of goods sold / Average merchandise inventory
For 2014: Merchandise inventory turnover = 719,250 / ((109,500 + 116,000)/2) = 6.63. Therefore, the answer is C.

Selected Information from the 2014 and 2013 Financial Statements of Sculley