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Homework answers / question archive / 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
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
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
