Course Solutions Uncategorized (Answered) : A mining company reported annual sales revenue of $75 billion, annual cost of goods sold of $50 billion, and inventory of $15 bi

(Answered) : A mining company reported annual sales revenue of $75 billion, annual cost of goods sold of $50 billion, and inventory of $15 bi

A mining company reported annual sales revenue of $75 billion, annual cost of goods sold of $50 billion, and inventory of $15 billion. What are the firm’s annual inventory turns?

Expert Answer


Inventory turnover ratio/turns = Cost of Goods Sold / Average Inventory for the Period

Cost of Goods Sold = $50 Billion

Inventory = $15 Billion

Inventory turnover ratio = 50/15 = 3.3

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