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Question

Refer to the following information:  

Calculate the inventory turnover ratio:

A 39.2 times Correct Answer Incorrect Answer
B 40 times Correct Answer Incorrect Answer
C 38.4 times Correct Answer Incorrect Answer
D 41 times Correct Answer Incorrect Answer
E 36 times Correct Answer Incorrect Answer

Solution

  Inventory turnover ratio = 11,76,000/30,000 Inventory turnover ratio = 39.2 Times Cost of goods sold = Net Sales (-) gross profit 1200000 (-) 2% X 1200000 1200000 (-) 24000 1176000 Net sales = Cash sales + Credit Sales (-) Return Inwards 800000 + 400000 (-) 0 1200000   = 30000

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