Suppose maestro's had cost of goods sold during the year of $ 230 comma 000 $230,000. beginning merchandise inventory was $ 35 comma 000 $35,000, and ending merchandise inventory was $ 45 comma 000 $45,000. determine maestro's maestro's inventory turnover for the year. round to the nearest hundredth.

5.75  times

Explanation:

The average Inventory Ratio shows the number of times a business sells and replaces its inventory. The formula used to calculate it.

Inventory Turnover Ratio =  Cost of Goods Sold divide by Average Inventory)  

where :  Average inventory = Beginning inventory + ending inventory /2

in this case average inventory = 35,000 + 45,000 /2

=$80,000/2

=$40,000

cost of goods sold = $230,000

Inventory turnover ratio = 230,000

         40,000

=5.75  times

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