Question

Last year, ace electronics had cost of goods sold of $2,500,000. the average inventory value last year was $250,000. what was the inventory turnover for ace electronics last year?

Answer 1

The inventory turnover for Ace Electronics last year is  A )10

Inventory turnover is an economic ratio showing how normally an employer has sold and changed stock for the duration of a given period. An employer can then divide the times in the duration by using the inventory turnover formula to calculate the days it takes to sell the inventory available.

In accounting, the inventory turnover is a degree of the variety of times stock is sold or used in a time period inclusive of a year. it is calculated to see if a business has an immoderate stock in evaluation to its sales stage.

The better the inventory turnover, the higher, since high inventory turnover generally manner an employer is selling items quickly, and there may be a vast call for their products. Low stock turnover, then again, might in all likelihood imply weaker sales and a declining call for an organization's merchandise.

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Question: Last year, Ace Electronics had a Cost of Goods Sold of $2,500,000. The average inventory value last year was $250,000. What was the inventory turnover for Ace Electronics last year?

A )10

B) 8

C) 4

D) 6

Learn more about the inventory turnover here: https://brainly.com/question/18914383

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