What is its average inventory? Answer please Stellar Apparel has an inventory turnover ratio of 5.8, $1.80 million in annual sales, and$750,000 in the cost of goods sold for the same annual period. What is its averageinventory?Options:a) $75,000b) $129,310c) $200,000

Step 1: Definition of Average InventoryAverage Inventory represents the typical amount of inventory…

Answered: Stellar Apparel has an inventory…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

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Stellar Apparel has an inventory turnover ratio of 5.8, $1.80 million in annual sales, and $750,000 in the cost of goods sold for the same annual period. What is its average inventory? Options: a) $75,000 b) $129,310 c) $200,000