Selected financial information for Stuart Company for Year 4 follows: Sales $2,050,000 1,435,000 Cost of goods sold Merchandise inventory Beginning of year End of year 156,000 191,000 Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? (Round your answer to 2 decimal places.) Merchandise inventory turnover times
Selected financial information for Stuart Company for Year 4 follows: Sales $2,050,000 1,435,000 Cost of goods sold Merchandise inventory Beginning of year End of year 156,000 191,000 Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? (Round your answer to 2 decimal places.) Merchandise inventory turnover times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Selected financial information for Stuart Company for Year 4 follows:**
- Sales: $2,050,000
- Cost of goods sold: $1,435,000
**Merchandise inventory**
- Beginning of year: 156,000
- End of year: 191,000
**Required**
Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? *(Round your answer to 2 decimal places.)*
**Merchandise inventory turnover** [Input Box] times
**Note:** To calculate the merchandise inventory turnover, use the formula:
\[
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}
\]
Where:
- Average Inventory = \(\frac{\text{Beginning Inventory} + \text{End Inventory}}{2}\)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf9c49b9-ebc3-4254-9011-25d5959a8511%2Ff79d5770-e471-45d3-aa83-a2f8e63da280%2Fh74a52_processed.png&w=3840&q=75)
Transcribed Image Text:**Selected financial information for Stuart Company for Year 4 follows:**
- Sales: $2,050,000
- Cost of goods sold: $1,435,000
**Merchandise inventory**
- Beginning of year: 156,000
- End of year: 191,000
**Required**
Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? *(Round your answer to 2 decimal places.)*
**Merchandise inventory turnover** [Input Box] times
**Note:** To calculate the merchandise inventory turnover, use the formula:
\[
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}
\]
Where:
- Average Inventory = \(\frac{\text{Beginning Inventory} + \text{End Inventory}}{2}\)
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