A company has an inventory turnover ratio of 5.00, merchandise inventory for 2020 of $90,000, and cost of goods sold of $450,000. What is the average inventory? a. $85,000 b. $90,000 c. $100,000 d. $110,000

A company has an inventory turnover ratio of 5.00, merchandise inventory for 2020 of $90,000, and cost of goods sold of $450,000. What is the average inventory? a. $85,000 b. $90,000 c. $100,000 d. $110,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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A company has an inventory turnover ratio of 5.00,
merchandise inventory for 2020 of $90,000, and cost of
goods sold of $450,000. What is the average inventory?
a. $85,000
b. $90,000
c. $100,000
d. $110,000

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