Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?

A. 3.79

B. 3.99

C. 3.84

D. 3.89

Question

Business

Isabela

14 July, 09:02

Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?

A. 3.79

B. 3.99

C. 3.84

D. 3.89

+3

Answers (1)

Know the Answer?

Adrienne Baird · Answer 1

A

Explanation:

In this question, we are asked to calculate the inventory turnover during 2019.

Mathematically;

Inventory turn over = Cost of goods sold/Average inventory

From the question, we identify that the cost of goods sold = $750,000

Average inventory = (188,000 + 208,000) / 2 = 396,000/2 = 198,000

Inventory turn over = 750,000/198,000 = 3.79

Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?A. 3.79B. 3.99C. 3.84D. 3.89

Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?

A. 3.79

B. 3.99

C. 3.84

D. 3.89