Answer :
Answer:
Option b. 2.5
Step-by-step explanation:
Beginning inventory at retail = $16,000
Ending inventory at retail = $26,000
Cost of goods sold = $18,500
Net sales = $52,500
Inventory turnover = [tex]\frac{\text{cost of goods sold}}{\text{average inventory}}[/tex]
= [tex]\frac{52,500}{(\frac{16,000+26,000}{2}) }[/tex]
= [tex]\frac{52,500}{21,000}[/tex]
= [tex]\frac{525}{210}[/tex]
= [tex]\frac{105}{42}[/tex]
= [tex]\frac{5}{2}[/tex]
= 2.5
Option b. 2.5 is the answer.
