Asked by Dayne Krachey on Jul 02, 2024
A merchant had a beginning inventory with a retail value of $130,000. During the year, the merchant purchased goods with a retail value of $250,000. At year-end, the merchant had inventory with a retail value of $180,000. Sales for the year were $775,000. Compute the inventory turnover at retail.
Inventory Turnover
An indicator that measures the frequency at which a company's inventory cycles through sales and restocking within a given period.
Sales
The transactions involving the exchange of goods or services for money, reflecting a key revenue source for businesses.
Beginning Inventory
The financial value of stock ready for market at the beginning of a bookkeeping period.
- Comprehend the principle of inventory turnover and its influence on business processes.
- Compute the inventory turnover ratio by utilizing values of beginning inventory, acquisitions, and final inventory.
Learning Objectives
- Comprehend the principle of inventory turnover and its influence on business processes.
- Compute the inventory turnover ratio by utilizing values of beginning inventory, acquisitions, and final inventory.
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