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The following information is available for Sheffield Company at December 31, 2018: beginning inventory $139000; ending...

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Finance

The following information is available for Sheffield Company atDecember 31, 2018: beginning inventory $139000; ending inventory$121000; cost of goods sold $845000; and sales $1880000.Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.6.5 times. 6.9 times.

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3.6 Ratings (566 Votes)

Information provided:

Beginning inventory= $139,000

Ending inventory= $121,000

Cost of goods sold= $845,000

Sales= $188,000

Inventory turnover is calculated using the below formula:

Inventory Turnover= Cost of Goods Sold/Average Inventory

                                      = $845,000/ ($139,000 + $121,000/2)

                                      = $845,000/ 130,000

                                      = 6.5 times.

Hence, the answer is option c.

In case of any query, kindly comment on the solution.
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The following information is available for Sheffield Company atDecember 31, 2018: beginning inventory $139000; ending inventory$121000; cost of goods sold $845000; and sales $1880000.Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.6.5 times. 6.9 times.

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