Selected financial information for Martin Company for Year 2 follows:Required:How many times did Martin's merchandise inventory turnover during Year 2? Round your answer to one decimal place.

What will be an ideal response?


4.2 times

Inventory turnover = cost of goods sold ÷ average inventory
Average inventory = ($72,000 + $80,000) ÷ 2 = $76,000
Inventory turnover = $320,000 ÷ $76,000 = 4.2 times

Business

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