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aksik [14]
3 years ago
10

Compute New Home​'s inventory turnover rate for the year.​ (Round to two decimal​ places.) Select the labels and enter the amoun

ts to compute the inventory turnover rate.
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

Inventory Turnover Ratio = 7.43 times

Explanation:  Due to missing data following assumptions have been taken:

<u>Assumptions</u><u>:</u>  Sales Value: $600,000

                        Gross Profit: $80,000

                        Opening Inventory: $ 60,000

                        Closing Inventory: $80,000

Inventory Turnover Ratio = \frac{Cost\ Of\ Goods\ Sold}{Average\ Stock}

Cost Of Goods Sold = Sales - Gross Profit = $600,000 - $80,000 = $520,000

Average Stock = \frac{OS +\ CS}{2}

WHERE, OS = Opening Stock

              CS= Closing Stock

Average Stock = $70,000

Inventory Turnover Ratio = \frac{520,000}{70,000} = 7.43 times

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2 years ago
"Lyla is a little more efficient at making potato soup than Jose. She is a lot more efficient than Jose at making bread. They de
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3 years ago
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5 0
2 years ago
What is the key feature in basic automobile insurance ?
tensa zangetsu [6.8K]

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3 0
3 years ago
Which of the following statements about mentors is true?
lesya [120]

Mentors are an excellent way to learn on the job- this statement about mentors is true.

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5 0
3 years ago
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