Answer:
4.5
Explanation:
Inventory refers to the goods that a company has in its stock. Inventory includes raw materials and finished goods sold by the company.
Inventory turnover refers to the number of times a company sells and replaces its inventory during a given period.
Annual sales of a manufacturing company [tex]=\$180,000[/tex]
Inventory [tex]=\$40,000[/tex]
Inventory turnover ratio for the company = Sales/Inventory
[tex]=\frac{180,000}{40,000} =4.5[/tex]
