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23 June, 03:57

AD corporation had sales of $750,000 and costs of goods sold of $350,000. Inventory at year end was $87,500. What is the inventory turnover?

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  1. 23 June, 05:55
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    4 times

    Explanation:

    The inventory turnover ratio of the AD corporation can be calculated using the below mentioned formula:

    Inventory turnover=Costs of goods sold/Average inventory

    In given question

    Costs of goods sold=$350,000

    Assuming, inventory at year end = Average inventory=$87,500

    Inventory turnover=$350,000/$87,500=4 times
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