Question

Question 5 Homework. Unanswered At January 1, 2025, Gerolsteiner, Inc. had $140,000 of inventory, and at December 31, 2025, the Company had $125,000 in inventory. During the year Gerolsteiner bought $880,000 in inventory. The Company had total sales of $2,200,000 during 2025. What was Gerolsteiner's approximate inventory turnover ratio? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 9.96 b 6.64 с 3.38 d 6.75

Answer 1

Cost of goods sold = Beginning inventory + Purchases - Ending inventory

= 140,000 + 880,000 - 125,000

= $895,000

Average inventory = (Beginning inventory + Ending inventory)/2

= (140,000 + 125,000)/2

= $132,500

Inventory turnover = Cost of goods sold/Average inventory

= 895,000/132,500

= 6.75

Correct option is (d)

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