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

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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