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What is the inventory turnover ratio for the year? Sales                Average Inventory Q1       $50       &nbsp

What is the inventory turnover ratio for the year?

Sales                Average Inventory

Q1       $50                              30

Q2       $70                              10

Q3       $90                                 8

Q4       $19                              22

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Answer #1

Inventory Turnover ratio = Sales ÷ Average inventory.

=> $50+70+90+19) ÷ {(30+10+8+22)/4}

=> $229 ÷ 17.5 = 13times.

Inventory Turnover ratio = 13 times

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