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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. Data Current Year Prior Year Annual Sales $3,200,000 $2,800,000 Gross Profit 45% 40% Beginning finished goods inventory for the current year was 18% of the prior year's annual sales, and ending finished goods inventory was 20% of the current year's annual sales. What was the company's inventory turnover at the end of the current period?

To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records. Data Current Year Prior Year Annual Sales $3,200,000 $2,800,000 Gross Profit 45% 40% Beginning finished goods inventory for the current year was 18% of the prior year's annual sales, and ending finished goods inventory was 20% of the current year's annual sales. What was the company's inventory turnover at the end of the current period?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 11E
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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. Data Current Year Prior Year Annual Sales $3,200,000 $2,800,000 Gross Profit 45% 40% Beginning finished goods inventory for the current year was 18% of the prior year's annual sales, and ending finished goods inventory was 20% of the current year's annual sales. What was the company's inventory turnover at the end of the current period?
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. Data Current Year Prior Year Annual Sales $3,200,000 $2,800,000 Gross Profit 45% 40% Beginning finished goods inventory for the current year was 18% of the prior year's annual sales, and ending finished goods inventory was 20% of the current year's annual sales. What was the company's inventory turnover at the end of the current period?
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