Calculate the Inventory Turnover Ratio from the following information Beginning Inventory = $10,000 Ending Inventory = $30,000 Cost of Goods Sold = $260,000 ITR = times

Accounting Aug 06, 2020

Expert Solution

Inventory Turnover Ratio (ITR) =

Cost of goods sold/ Average inventory

Average inventory = (Opening inventory + closing inventory)/2

Average inventory = $(10,000 + 30,000)/2

=$40,000/2

=$ 20,000

ITR = 260,000/20,000

= 13 times

ITR =13 times

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote