Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500 . Calculate the inventory turnover ratio
a. 2
b. 0.5
c. 3.3
d. 1.3
a
FEEDBACK: a. Correct.
b. Incorrect. Inventory turnover is computed by dividing cost of goods sold by the average inventory.
c. Incorrect. Inventory turnover is computed by dividing cost of goods sold by the average inventory.
d. Incorrect. Inventory turnover is computed by dividing cost of goods sold by the average inventory.
You might also like to view...
Normally, the report prepared for a department is a(n)
a. balance sheet. b. income statement. c. statement of retained earnings. d. cash flow statement.
Differentiate between line extensions and brand extensions. Provide an example of each
What will be an ideal response?
Rebecca is currently working, but is planning to start a college in few years. For this purpose, she would need $20,000. Today she can start investing $750 monthly in an investment account that pays 6 percent compounded monthly. How long would it take her to have enough money to start college?
A. 21.25 months B. 27.78 months C. 24.98 months D. 22.56 months E. 30.25 months
As a result of reengineering our organization, we have decided that we must eliminate two layers of management in order to increase our productivity. This process is known as:
a. re engineering b. downsizing c. restructuring d. delegation e. coordination