A company's cost of goods sold for the year was $97,500. Ending inventory was $12,000 and $13,500
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Calculate the company's inventory turnover ratio. If the company's ratio was 6.2 in the prior year, has the company become more or less efficient in selling its inventory?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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