The following balances come from the financial statements of way industries: sales revenue $850,000; accounts receivable $280,000; beginning inventory $50,000; ending inventory $30,000; net purchases $460,000; sales returns $50,000; sales discount $20,000. given this information, what is the company's inventory turnover ratio? a) 28.33. b) 16.0. c)21.25. d) 12.0.

12

Explanation: The ratio of  number of times an inventory is used or sold in a specific period , generally a year, is called inventory turnover ratio. It can be computed by using the following formula :-

=

where,

cost of goods sold = beginning inventory + net purchase - ending inventory

                               = $50,000 + $460,000 - $30,000

                               = $ 480,000

average inventory  =

                               =

                               = $40,000

so,

inventory turnover ratio =

                                       = 12

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answercontrol is returned to method c;