Course Solutions Uncategorized Restaurant Annual Sales 417000 Average Inventory 8250 Annual Cost Goods Sold 273000 Round Q34321052

Restaurant Annual Sales 417000 Average Inventory 8250 Annual Cost Goods Sold 273000 Round Q34321052

A restaurant has annual sales of$417000, an average inventory of $8250, and an annual cost of goodssold of $273000.(Round your answer to 2 decimalplaces.)What is the restaurant’smonthly inventory turns?

Expert Answer


Solution:

Inventory turns is calculatedas,

Inventory turns = Annual cost ofgoods sold / Average inventory

Inventory turns = $273000 /$8250

Inventory turns = 33.09

Monthly inventory turns = Inventoryturns / Number of months in a year

Monthly inventory turns = 33.09 /12

Monthly inventory turns =2.76

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