Answer:
Ans. Inventory turnover ratio (2017) = 7
Explanation:
Hi, the formula to find the inventory turnover ratio is as follows.
[tex]Inventory TurnoverRatio=\frac{COGS}{Average Invetory}[/tex]
Where:
COGS= Cost of Goods Sold
If we need to find the inventory turnover ratio, first we need to find the average inventory, that is:
[tex]AverageInventory=\frac{(34150+30390)}{2} =32270[/tex]
Since we already know the COGS for 2017, the answer is as follows.
[tex]InventoryTurnoverRatio(2017)=\frac{211600}{32270} =7[/tex]
That is 7 times a year (rounded).
Best of luck.
