Caruso, inc. has an inventory turnover rate of 8 times. if its cost of goods sold is $150,000, then

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02-10-2017
Business

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Caruso, inc. has an inventory turnover rate of 8 times. if its cost of goods sold is $150,000, then

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ahmedishaal ahmedishaal · Answer 1 · 2017-10-14T02:51:14+02:00

ahmedishaal ahmedishaal

14-10-2017

Inventory turnover rate = 8 times
Cost of goods sold = $150,000
Then the average inventory of company is $18,750.
This is how we calculate this;
Cost of goods sold / inventory turnover rate =
$150,000 / 8 = $18,750.

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