A company has $72,500 of inventory at the beginning of the year and $65,500 at the end of the year. sales revenue is $986,400, cost of goods sold is $572,700, and net income is $124,200 for the year. the inventory turnover ratio is closest to:
Turnover ratio is defined as cost of goods sold divided by average inventory.
average inventory=($72,500 + $65,500)/2 = $69,000
$572,700 / $69,000 = 8.29
Turnover ratio is approximately 8.29
