Answer (B) is correct . The inventory turnover is computed by dividing cost of goods sold by average inventory. Consequently, the turnover is 4 times {$220,000 ¡Â [($60,000 +Answer (A) is incorrect because The number 3.7 is based on the ending inventory.
Answer (C) is incorrect because The number 4.4 is based on the beginning inventory.
Answer (D) is incorrect because Sales divided by ending inventory equal 5.0.
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Assume sales and cost of goods sold for Year 2 were $300,000 and $220,000, respectively. Lisa, Inc.’s inventory turnover for Year 2 was
