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for the year, sealy incorporated reports net sales of $50,000, cost of goods sold of $40,000, and an average inventory balance of $5,000. what is sealy’s inventory turnover ratio?

Respuesta :

Sealy’s inventory turnover ratio given its cost of goods sold and average inventory balance is 8.

What is sealy’s inventory turnover ratio?

Inventory turnover ratio is a financial ratio that is used to determine the efficiency with which a firm performs its daily task. Inventory turnover ratio is an example of an activity ratio.

Inventory turnover ratio is the ratio of the cost of goods sold and the average inventory balance of a firm. The higher the inventory turnover ratio is, the more efficient the firm is.

Inventory turnover ratio = cost of goods sold / average inventory

$40,000 / $5,000 = 8

To learn more about financial ratios, please check: https://brainly.com/question/16447941

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