Question 26: Let's assume Company XYZ reported the following information:

Revenue

Cost of Goods Sold

Inventory

Last Year

$1,000,000

$500,000

$95,000

This Year

$1,500,000

$600,000

$100,000

Using the mentioned below formulas and the information above, calculate Company XYZ's inventory turnover ratio for this year.

Formula 1: Sales/Inventory

Formula 2: Cost of Goods Sold/ Average Inventory