Answered: Peak Performance Shoe Store has an…

Peak Performance Shoe Store has an inventory turnover ratio of 5.8, $2.1 million in annual sales, and $750,000 cost of goods sold (COGS) for the same annual period. What is its average inventory?

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 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

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Question

What is its average inventory of this financial accounting question?

Peak Performance Shoe Store has an inventory turnover ratio of 5.8,
$2.1 million in annual sales, and $750,000 cost of goods sold (COGS)
for the same annual period.
What is its average inventory?

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