Chapter 17, Problem 5DQ

To determine

Inventory Turnover Ratio

This ratio is a financial metric used by a company to quantify the number of times inventory is used or sold during the accounting period.

Formula: $\text{Inventory}\text{turnover =}\frac{\text{Cost}\text{of}\text{goods}\text{sold}}{\text{Average}\text{inventory}}$

a and b.

To determine: the indication of inventory turnover ratio