15 Zebra Inc cost of goods sold for the year is 2300000 and

15) Zebra, Inc. cost of goods sold for the year is $2,300,000, and the average merchandise inventory for the year is $139,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.) A) 6.04 times B) 16.55 times C) 8.27 times D) 93.96 times

Solution

Inventory turnover ratio = Cost of goods sold / Average Inventory

Cost of goods sold = $2,300,000

Average Inventory = $139,000

Inventory turnover ratio = $2,300,000/$139,000 = 16.55

Hence, correc t answer is b) 16.55 times