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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

Accounting

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

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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