A restaurant has annual sales of $417000, an average inventoryof $8250, and an annual cost of goods sold of $273000. (Round youranswer to 2 decimal places.) What is the restaurant’s monthlyinventory turns?
Expert Answer
Inventory turnover ratio is nothingbut the ratio that measures the number of times inventory is soldor used in a given time period and is calculated by dividing netsales by average inventory.
It measures how fast the company isable to sell its inventory, so low turnover means less sales andhigh ratio means strong sales. Inventory turnover ratio is animportant component for calculating return on assets so if
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