The grocery industry has an annual inventory turnover of abo

The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc., had a cost of goods sold last year of $11, 680,000; its average inventory was $984, 090. What was Organic Grocers\' inventory turnover, and how does that performance compare with that of the industry? What was Organic Grocers\' inventory turnover? times per year (round your response to two decimal places). How does Organic Grocers\' performance compare with that of the industry? It is the industry.

Solution

Dear Student Thank you for using Chegg !! Annual Inventory Turnover of Industry =                     14.00 Cost of goods sold last year = 1,16,80,000.00 Average Inventory =         9,84,090.00 Inventory turover= Cost of Goods Sold/ Average Inventory = 11,680,000/984,090 =                     11.87 Inventory turnover of Organic grocer is less as compared to iindutry. Thus its performance is not upto industry standards =