Magnolia Company's inventory at January 1, 2020 was $7,600, and at December 31, 2020 the company had $4,400 of inventory. During the year Magnolia bought $51,000 more inventory. Sales for 2020 were $125,000, and $122,000 of those sales were for cash and $3,000 was on account. What was Magnolia's 2020 inventory turnover? 2.31 2.15 O 9.03 O 2.25 O None of the above
Magnolia Company's inventory at January 1, 2020 was $7,600, and at December 31, 2020 the company had $4,400 of inventory. During the year Magnolia bought $51,000 more inventory. Sales for 2020 were $125,000, and $122,000 of those sales were for cash and $3,000 was on account. What was Magnolia's 2020 inventory turnover? 2.31 2.15 O 9.03 O 2.25 O None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please help me with this accounting homework question, I am having so much trouble. It deals with ratios.
Transcribed Image Text:Magnolia Company's inventory at January 1, 2020 was $7,600, and at December 31, 2020 the
company had $4,400 of inventory. During the year Magnolia bought $51,000 more inventory. Sales
for 2020 were $125,000, and $122,000 of those sales were for cash and $3,000 was on account.
What was Magnolia's 2020 inventory turnover?
2.31
2.15
9.03
O 2.25
None of the above
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