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To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records. Current Year Prior Year Annual Sales $2,525,000 $2,125,000 Gross Profit 40% 35% Beginning finished goods inventory for the current year was 15% of the prior year's annual sales, and ending finished goods inventory was 22% of the current year's annual sales. What was the company's inventory turnover at the end of the current period? a. 1.82 b. 2.31 c. 2.73 d. 3.47

To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records. Current Year Prior Year Annual Sales $2,525,000 $2,125,000 Gross Profit 40% 35% Beginning finished goods inventory for the current year was 15% of the prior year's annual sales, and ending finished goods inventory was 22% of the current year's annual sales. What was the company's inventory turnover at the end of the current period? a. 1.82 b. 2.31 c. 2.73 d. 3.47

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 38BE: Inventory Analysis Callahan Company reported the following information for the current year....
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To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records. Current Year Prior Year Annual Sales $2,525,000 $2,125,000 Gross Profit 40% 35% Beginning finished goods inventory for the current year was 15% of the prior year's annual sales, and ending finished goods inventory was 22% of the current year's annual sales. What was the company's inventory turnover at the end of the current period? a. 1.82 b. 2.31 c. 2.73 d. 3.47
Transcribed Image Text:To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records. Current Year Prior Year Annual Sales $2,525,000 $2,125,000 Gross Profit 40% 35% Beginning finished goods inventory for the current year was 15% of the prior year's annual sales, and ending finished goods inventory was 22% of the current year's annual sales. What was the company's inventory turnover at the end of the current period? a. 1.82 b. 2.31 c. 2.73 d. 3.47
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