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Barry, Inc.'s sales equal $30,000 and cost of goods sold equals $10,000. Its beginning inventory was $800 and its ending inventory is $1,200. Barry's inventory turnover ratio equals ____ times

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Answer:

10

Explanation:

The Inventory turnover is a financial measure used to assess the number of times inventory is sold or used in a given period. It is given as the ratio of cost of sales to average inventory for the period.

Given

Cost of goods sold = $10,000

Opening inventory = $800

Closing inventory = $1,200

Average inventory = ($800 + $1,200)/2 = $1,000

Inventory turnover ratio = $10,000/$1,000

= 10 times

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