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Sales=1,000,000, Gross Profit=200,000 & Inventory= 400000

Then Inventory turnover is:

*2.5

*2

*1/2

*1

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Question added by ahmed aldhurafi , مراجع داخلي ومراقب مالي , شركة تأمين
Date Posted: 2015/03/13
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Alsayed Mamdouh
by Alsayed Mamdouh , Senior Accountant , Hujra Group For Hotels And Resorts Maintenance & Operations

 asume  begening  inventory  zero 

CGS/ average inventory  ((beg inventory +ending inventory)/2)

800000 / 200000 =  4

or else  beg inv  was  400000 

CGS /average inv  =  2

Hamza Mohamed Shokry Hamza Elkalaf
by Hamza Mohamed Shokry Hamza Elkalaf , Internal Audit manager , Dlala Brokerage and investment company

inventory turnover equals the cost of goods sold or net sales divided by the average inventory and the answer is2

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