Answer:
Over the past year, the company sold and replaced its inventory 31.37x
Explanation:
In order to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate first the inventory with the following formula:
Current assets=cash+inventory+account receivables
inventory=Current assets-cash-account receivables
inventory=$85,000-$38,250-$21,250
inventory=$25,500
So, to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate the Inventory turnover ratio as follows:
Inventory turnover ratio=sales/inventory
Inventory turnover ratio=$800,000/$25,500
Inventory turnover ratio=31.37x
Therefore, over the past year, the company sold and replaced its inventory 31.37x
