Elephant, Inc.'s cost of goods sold for the year is $1,900,000, and the average merchandise inventory for the year is $132,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)
A) 6.95 times
B) 14.39 times
C) 7.20 times
D) 9.31 times
B) 14.39 times
Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory =
$1,900,000 / 132,000 = 14.39 times
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