Answer:
Inventory turnover= 5.5 times
Explanation:
Current ratio is given as 3
Cost of goods sold = $5,000
Current assets = $1,800
Quick ratio= 1.5
Current ratio= current assets/ current liabilities
3= 1,800/ current liabilities
Current liabilities= 1,800/3
Current liabilities= $600
Quick ratio= Cash and Receivables/ Current liabilities
1.5= Cash and Receivables/600
Cash and Receivables= 600* 1.5= $900
Current asset= Cash and Receivables + Inventory
1,800= 900+ Inventory
Inventory= 1,800-900
Inventory= $900
Inventory turnover= Cost of goods sold/ Inventory
Inventory turnover= 5,000/900
Inventory turnover= 5.5 times
