The inventory turnover is calculated as annual cost of sales divided by the average annual inventory. This answer was calculated using the 2010 sales of $300,000 instead of the 2010 cost of sales of 220,000, and using 2010 year-end inventory instead of the average inventory during the year.
The inventory turnover is calculated as annual cost of sales divided by the average annual inventory. This answer was calculated using the 2009 year-end inventory instead of the average inventory during the year.
The inventory turnover is calculated as annual cost of sales divided by the average annual inventory. They give us in the problem the annual cost of sales of $220,000. The average inventory is $55,000. The inventory turnover is calculated as $220,000 divided by $55,000, or 4 times. This means that Lisa sells their inventory four times a year.
The inventory turnover is calculated as annual cost of sales divided by the average annual inventory. This answer was calculated using the 2010 year-end inventory instead of the average inventory during the year.
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Assume sales and cost of goods sold for 2010 were $300,000 and $220,000, respectively. Lisa Inc.'s inventory turnover, using a 360-day year, was