Kleso, Intermedlate Accounting, 16e Help I System Announcements t Time: 08:18 PM

Question

Kleso, Intermedlate Accounting, 16e Help I System Announcements t Time: 08:18 PM/ Remaining: 12 min CALCULATOR PRINTER VERSION | BACK CES Multiple Choice Question 123 The 2017 financial statements of Blossom Company reported a beginning inventory of $67000, an ending inventory of $107000, and cost of goods sold of $505000 for the year. Blossom's inventory turnover for 2017 Is 0 58 times. O 7.5 times. O 12.6 times. 4.7 times. Click if you would like to Show Work for this question: Open Show Work Question Attempts: O of 1 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Cost of Goods Sold = $505000

Average Inventory = (Beginning Inventory + Ending Inventory) / 2

= ($67000 + $107000) / 2

= $87000

Inventory Turnover Ratio = $505000 / $87000

= 5.8 times

The Answer is "A"

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