GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Given the formula for stock turnover as Net Sales / Average inventory. Use algebra to solve the following problem:What was the average inventory if the stock turnover rate is 5 and the net sales were $76, 850?
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15370
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14370
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13370
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16370
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Explanation:
Detailed explanation-1: -You can calculate the inventory turnover ratio by dividing the inventory days ratio by 365 and flipping the ratio. In this example, inventory turnover ratio = 1 / (73/365) = 5. This means the company can sell and replace its stock of goods five times a year. Source: CFI financial modeling courses.
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