Asked by Felicia Rioza on Jul 07, 2024
Verified
A national firm has sales of $575,000 and cost of goods sold of $368,000. At the beginning of the year, the inventory was $42,000. At the end of the year, the inventory balance was $45,000. What is the inventory turnover rate?
A) 8.46 times
B) 12.78 times
C) 13.22 times
D) 28.56 times
E) 43.14 times
Inventory Turnover Rate
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
Cost of Goods Sold
The direct expenses related to the creation of products sold by a business, including costs for materials and labor.
Sales
Revenue generated from the selling of goods or services within a specific period.
- Compute the operating cycle and inventory turnover for evaluating the efficiency of a company.
Verified Answer
Learning Objectives
- Compute the operating cycle and inventory turnover for evaluating the efficiency of a company.
Related questions
Dexter and Francis Merchants (DFM) Sell Their Inventory in 94 ...
Use the Following Information for Razor Company to Compute Inventory ...
Kisselburg Corporation Has Provided the Following Financial Data ...
Financial Statements for Praeger Corporation Appear Below: Dividends ...
Steinkraus Corporation Has Provided the Following Data: Required ...