Answer:
INVENTORY TURNOVER 9,77
Explanation:
To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year [($159,000+192,000)/2] , take the Total Cost of Goods ($1,715,000) and divide it by the Average Inventory ($175,500), the result it's the Inventory Turnover of the company, in this case 9,77.
To find the days in inventory we have to divide 365 (days of the year) by the Inventory Turnover, 9,77, the result is 37 days.
END START Assets
$192,000 $159,000 Inventory
BAIRD
9,77 INVENTORY TURNOVER = $1,715,000 / $175,500
$1,715,000 Cost Of Goods
$175,500 Average Inventory
37 DAYS IN INVENTORY = 365 / 9,77
