Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
The company's inventory turnover ratio, based on the financial data, equals 10 times.
What is the inventory turnover ratio?
The inventory turnover ratio measures the number of times the company sells and replaces its inventory over a given period.
The formula for calculating the Inventory Turnover Ratio is the Cost of Goods Sold divided by the Average Inventory.
The Average Inventory is the mean of the beginning and ending inventories.
Data and Calculations:
Sales revenue = $60,000
Cost of goods sold = $20,000
Beginning inventory = $1,600
Ending inventory = $2,400
Average inventory = $2,000 ($1,600 + $2,400)/2
Inventory turnover ratio = 10x ($20,000/$2,000)
Thus, the company sells and replaces its inventory over a period of 10 times.
Learn more about the inventory turnover ratio at https://brainly.com/question/18914383
#SPJ1
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.