The company's inventory turnover ratio, based on the financial data, equals 10 times.
<h3>What is the inventory turnover ratio?</h3>
The inventory turnover ratio measures the number of times the company sells and replaces its inventory over a given period.
The formula for calculating the Inventory Turnover Ratio is the Cost of Goods Sold divided by the Average Inventory.
The Average Inventory is the mean of the beginning and ending inventories.
<h3>Data and Calculations:</h3>
Sales revenue = $60,000
Cost of goods sold = $20,000
Beginning inventory = $1,600
Ending inventory = $2,400
Average inventory = $2,000 ($1,600 + $2,400)/2
Inventory turnover ratio = 10x ($20,000/$2,000)
Thus, the company sells and replaces its inventory over a period of <u>10 times.</u>
Learn more about the inventory turnover ratio at brainly.com/question/18914383
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