Liberty Corporation reported the following financial stateme

Liberty Corporation reported the following financial statements: (Click the icon to view the financial statements.) Liberty\'s inventory turnover during 2017 was (amounts rounded) O A. 11 times. ( B. 10 times. C. 9 times. O D. not determinable from the data given. Click to select your answer.

Solution

Inventory Turnover during 2017 = 9 Times

Cost of goods sold = $10,827

Average Inventory = ( $1,346 + 1,060) / 2 = $1,203

Inventory Turnover = cost of goods sold / Average Inventory

= $10,827 / $1,203

= 9 Times