Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 5 - No. 19)
If a company's cost of goods sold is $50,000 and its average inventory is $10,000, what is the inventory turnover rate?
0.2
5
$60,000
$40,000
Explanation
Turnover rate = COGS / Average Inventory = $50,000 / $10,000 = 5
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