Answer:
 500,000÷  200,000 = 2.5 
Explanation:
inventory turnover is calculated as 
cost of goods sold ÷ Average inventory 
From the information of Baxter department store's financial statement, cost of goods sold can be calculated as 
Opening inventory + purchases - closing inventory  
100,000 + 700,000 - 300,000 = 500,000
cost of goods sold = 500,000
Average stock is calculated as opening inventory + closing inventory ÷ 2 
100,000 + 300,000 ÷ 2 = 200,000  
Average inventory = 200,000
Therefore inventory turnover = 500,000÷  200,000 = 2.5