Based on the following data for the current year, what is the inventory turnover?

Sales on account during year $700,000
Cost of goods sold during year 270,000
Accounts receivable, beginning of year 45,000
Accounts receivable, end of year 35,000
Inventory, beginning of year 90,000

a) 9.7 b) 3.0 c) 2.5 d) 2.7

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is being sold or used during a given period of time.

A high inventory turnover means a company is selling goods very quickly and that demand for their product exists. Low inventory turnover means weaker sales and ing demand for a company's products.

Inventory turnover = Cost of goods sold/Average inventory

Average inventory is:

($110,000 + $90,000)/2

=$100,000

Therefore, inventory turnover ratio:

$270,00//$100,000

2.7

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

answer; to open a new transaction, the user should type the code/0 along with a new transaction code, when done with that the user should press enter to open the transaction; good luck;