Question

Baker Mfg Inc. wishes to compare its inventory turnover to those of industry​ leaders, who have turnover of about 13 times per year and 8​% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue ​$27,500 Cost of sales ​$21,320 Inventory ​$1,230 Total assets ​$17,500 (​a) What is​ Baker's inventory​ turnover? nothing times per year ​(round your response to two decimal​ places).

Answer 1

Answer:

The Baker's inventory​ turnover is 17.33 times

Explanation:

Inventory Turnover: It is a ratio which shows a relationship between the cost of goods sold and the average inventory

For computing the inventory turnover ratio, we have to apply the formula which is shown below:

Inventory turnover ratio = Cost of sales ÷ inventory

                                        = $21,320 ÷ $1,230

                                        = 17.33 times

The other items which are mentioned in the question are not considered. Hence, these are ignored.