Question

Your company has an average inventory of $70 million. Annual cost of goods sold (COGS) is $280 million. Profit in the most recent year was $140 million. What are annual inventory turns for your company

Answer 1

Answer:

the annual inventory turns for your company is 4 times

Explanation:

The computation of the annual inventory turns is shown below:

= Annual cost of goods sold ÷ average inventory

= $280 million ÷ $70 million

= 4 times

Hence, the annual inventory turns for your company is 4 times

Therefore the above formula should be applied and the same should be used