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Calculate the inventory turnover ratio for Company STU, given its cost of goods sold of $800,000 and average inventory of $200,000. Describe the inventory turnover

Calculate the inventory turnover ratio for Company STU, given its cost of goods sold of $800,000 and average inventory of $200,000. Describe the inventory turnover ratio as a measure of a company's efficiency in managing its inventory levels. Discuss the significance of a higher or lower inventory turnover ratio in assessing operational efficiency, inventory management practices, and its implications for cash flow and profitability.

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