Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:

A) 5.92
B) 1.05
C) 6.07
D) 6.23

Inventory turnover = Cost of goods sold / Average inventory

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory for Year 2 = (120,000 + 114,000) / 2 = 117,000

Inventory turnover for Year 2 = 710,000 / 117,000 = 6.07 (rounded to two decimal places)

Therefore, the closest option is C) 6.07.

Inventory turnover = Cost of goods sold ÷ Average inventory*
= $710,000 ÷ $117,000 = 6.07 (rounded)
*Average inventory =
($114,000 + $120,000)÷ 2 = $117,000