Asked by Blake Mieser on Apr 24, 2024
Purrfect Pet Shop takes inventory semiannually and bases inventory on selling price. Beginning inventory for the year was $67,320. Inventory at the end of the first six months was $79,680. Ending inventory for the year was $82,500. Net sales for the year equal $183,750. Compute the inventory turnover at retail.
Inventory Turnover
A measure of how many times a company's inventory is sold and replaced over a specific period.
Net Sales
The total revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.
Semiannually
Occurring twice a year, typically used in the context of payments, interest calculations, or periodic events.
- Obtain knowledge on how to calculate inventory turnover to analyze the efficacy of managing inventory.
Learning Objectives
- Obtain knowledge on how to calculate inventory turnover to analyze the efficacy of managing inventory.