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A manufacturing company producing medical devices reported $50 million in sales over the last year. At...

A manufacturing company producing medical devices reported $50 million in sales over the last year. At the end of the same year, the company had $17 million worth of inventory of ready-to-ship devices.
(Round your answer to 1 decimal place.)
Assuming that units in inventory are valued (based on cost of goods sold) at $750 per unit and are sold for $2000 per unit, what is the company’s annual inventory turnover?
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Answer #1

Inventory turnover Ratio (ITR) = COGS / Average Inventory = Sales / Average inventory

Given that, Sales = $50 million

Inventory = $17 million

ITR = 50 million / 17 Million

= 2.9

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