Question

With the information given below, what is the inventory turnover ratio of the firm? Sales = 500,000 Gross profit =100,000 Opening inventory =40,000 Closing inventory =60,000

Q: Answer-&lt;p&gt;With the information given below, what is the inventory turnover ratio of the firm?&amp;nbs...

Inventory turnover ratio is computed by dividing the cost of goods sold COGS by average inventory at cost. COGS Sales- gross profit 500,000-100,000 400,000 Average Inventory Opening inventory Closing inventory 2 40,00060,0002 50,000 Inventory turnover ratio 400,00050,000 8