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Inventory Turnover Ratio Analysis and Inventory Management : A company had beginning inventory of $50,000 and ending inventory of $40,000. During the year, the company
Inventory Turnover Ratio Analysis and Inventory Management: A company had beginning inventory of $50,000 and ending inventory of $40,000. During the year, the company incurred cost of goods sold (COGS) amounting to $400,000. Calculate the inventory turnover ratio for the company, and interpret the ratio in terms of efficiency in managing inventory and potential implications for cash flow and profitability.
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