Inventory turnover (Learning Objective 8) 10–15 min.

Pete’s Plants has the following information as of July 31, 2014:

Requirements 1. Compute the rate of inventory turnover for Pete’s Plants for the year ended July 31, 2014. Round the result to two decimal places.
2. The rate of inventory turnover for Pete’s Plants was 10.24 in 2013. Has the rate improved or deteriorated?AppendixLO1

Transcribed Image Text:

Sales Revenue... Cost of Goods Sold: Beginning Inventory. Net Purchases...... Cost of Goods Available Ending Inventory. Cost of Goods Sold. Gross Profit.......... Operating Expenses Net Income. $ 44,300 257,000 $980,000 301,300 21,200 280,100 699,900 70,000 $629,900