Ask Question
9 December, 15:09

John Company has cost of goods sold of $100,000. Beginning inventory is $1,500 and ending inventory is $2,000. Calculate John Company's inventory turnover.

+2
Answers (1)
  1. 9 December, 15:22
    0
    57.14

    Explanation:

    Inventory Turnover is a ratio to show how many times a company has used, sold and replaced inventory (stock) over a given period of time.

    It is calculated as follows:

    Cost of Goods Sold / Average Inventory

    To calculate that, we need find out average inventory, which is:

    (Inventory at beginning + inventory at end) / 2

    That is: ($1500 + $2000) / 2 = $1750.

    Thus, inventory turnover is:

    $100,000 / $1750 = 57.14 (approx. 2 decimal places)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “John Company has cost of goods sold of $100,000. Beginning inventory is $1,500 and ending inventory is $2,000. Calculate John Company's ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers