muskhere
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Joined: 23 Oct 2009
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Posts: 61
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| Posted: 14 Nov 2009 at 23:06 | IP Logged
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To measure inventory management performance, a company monitors its inventory turnover ratio. Listed
below are selected data from the company's accounting records:
Current year Prior year
Annual sales $2,525,000 $2,125,000
Gross profit percent 40% 35%
Beginning finished goods inventory for the current year was 15% of the prior-year's annual sales volume
at cost, and ending finished goods inventory was 22% of the current-year's annual sales volume at cost.
What was the company's inventory turnover at the end of the current period?
a. 4.55
b. 6.21
c. 6.51
d. 6.81
Solution:
Choice "d" is correct.
i am getting calculation wrong.Kindly solve..
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