Question

During the year that ended December 31, Clarissa sold goods that cost $67,800, her expenses totaled $8,125 and her freight-in totaled $4,800. Her company's average stock of goods during the same period was $13,432. Clarissa's company's inventory turnover ratio is __________.

Answer 1

Answer:

5.05

Explanation:

Inventory turnover is computed as

= Cost of goods sold / Average inventory

Given that;

Cost of goods sold = $67,800

Average inventory = $13,432

Then,

Inventory turnover ratio is

= $67,800 / $13,432

= 5.05