Question

When Sales are 360000, and GP ratio is 50% and the average inventory is 90000, what is the inventory turnover ratio?

A 2 Correct Answer Incorrect Answer
B 0.5 Correct Answer Incorrect Answer
C 4 Correct Answer Incorrect Answer
D 2.5 Correct Answer Incorrect Answer
E 3 Correct Answer Incorrect Answer

Solution

Inventory Turnover Ratio is COGS/ Average Inventory = 180000/90000 = 2.

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