A Kidz Korner had net sales of 3001680 for the year If the b

A. Kidz Korner had net sales of $3,001,680 for the year. If the beginning inventory at retail was $241,700 and the ending inventory at retail was $592,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

a. 2.5 Times

b. 5.1 Times

c.7.2 Times

d. 12.4 Times

B. Silver Bullet Ranch had net sales of $340,000 and total assets of $208,500. Find the asset turnover ratio. (Round to the nearest hundreth)

a. 1.48:1

b. 0.83:1

c. 112.0:1

d. 1.63:1

Solution

A)Inventory Turnover=Net Sales/Average Inventory;

                            =3001680*2/(241700+592100)=7.2times

B)Assest turnover ratio=Net sales/average tpta assets

                                  =340000/208500=1.63:1