Answered: A company has an inventory turnover…

A company has an inventory turnover ratio of 4.20, merchandise inventory for 2017 of $87,065, and cost of goods sold of $315,000. What is the average inventory?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...

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Question

Please provide the accurate answer to this general accounting problem using appropriate methods.

A company has an inventory turnover ratio of 4.20,
merchandise inventory for 2017 of $87,065, and cost
of goods sold of $315,000. What is the average
inventory?

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