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Use the following information for Shafer Company to compute inventory turnover for year 2.

Year 2 Year 1
Net sales $656,000 $584,600
Cost of goods sold 390,200 361,010
Ending inventory 79,400 81,080

Respuesta :

Zviko

Answer:

Inventory turnover for year 2 is 4.91 times.

Explanation:

Inventory turnover measures liquidity of company`s inventory

Inventory turnover = Cost of goods sold / Ending inventory

                               = $390,200 / $79,400

                               = 4.91 times

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