In 2012, Ralph's Rug Outlet generated net sales of $1,250,000 and cost of goods sold of $723,000.

Question:

In 2012, Ralph's Rug Outlet generated net sales of $1,250,000 and cost of goods sold of $723,000. Ralph's average inventory of rugs during the year was $95,300.
Required
Calculate Ralph's for the year and briefly explain the result.
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,...