Question

Shaffer Company presents the following data for 2012. Net Sales, 2012 $3,007,124 Net Sales, 2011 93,247 Cost of Goods Sold, 2012 2,000,326 Cost of Goods Sold, 2011 1,000,120 Inventory, beginning of 2012 341,169 Inventory, end of 2012 376,526

Answer 1

Answer:

5.6

Explanation:

Here is the question for the data given: What is the merchandise inventory turnover for 2012?

Given: Inventory, beginning of 2012- $341,169;

            Inventory, end of 2012- $376,526.

            Cost of goods sold, 2012- $2000326.

Formula; inventory turnover rate = $\frac{\textrm{Cost of goods sold}}{\textrm{average inventory}}$      

First, lets calculate average of inventory

Average inventory= $\frac{Inventory\ beginning + Inventory\ ending}{2}$

Average inventory= $\frac{341169 + 376526}{2} = \ 358847.2$

Now, lets find out inventory turnover rate.

Inventory turnover rate= $\frac{2000326}{358847.2} = 5.57$

∴ Inventory turnover rate is 5.57 ≅ 5.6