Answer:
3.61
Explanation:
The data in the question are merged together and they are first separated before answering the question as follows:
Tin Company Aluminum Company
$ millions Sales COGS Inventories Sales COGS Inventories
2019 $42,750 $40,775 $10,005 $66,420 $56,175 $25,350
2018 41,250 29,960 12,660 69,150 42,700 26,950
Answer is as follows:
Tin Company's average inventory = ($10,005 + $12,600) ÷ 2 = $11,302.50
Tin Company's cost of goods sold (COGS) in 2019 = $40,775
Tin Company's 2019 inventory turnover = COGS ÷ Average inventory = $40,775 ÷ $11,302.50 = 3.61
