# solution

13) Goods available for sale are \$40,000; beginning inventory is \$16,000; ending inventory is \$20,000; and cost of goods sold is \$50,000. The inventory turnover is __________.

14) Goods available for sale are \$28,000; beginning inventory is \$13,000; ending inventory is \$15,000; and cost of goods sold is \$39,000. What is the inventory turnover?

15) Gross profit is \$40,000; beginning inventory is \$16,000; ending inventory is \$20,000; and sales are \$120,000. Calculate the inventory turnover and days in inventory.

16) 2012 ending inventory is \$27,000; 2013 ending inventory is \$19,000;2014 ending inventory is \$21,000; and cost of goods sold is \$63,500 for 2014 and \$65,900 for 2013. What is the inventory turnover for 2013 and 2014? Has the inventory turnover improved?

17) 2012 ending inventory is \$25,000; 2013 ending inventory is \$19,500; 2014 ending inventory is \$22,000; and cost of goods sold is \$65,500 for 2014 and \$67,900 for 2013. What is the days in inventory for 2013 and 2014? Has it improved?

18) If a company has an inventory turnover rate of 4, how often is the company selling its inventory in months?

19) Gross profit is \$40,000; beginning inventory is \$16,500; ending inventory is \$20,800; and sales are \$120,000. The industry average has an inventory turnover of 4.8. How is the company doing with its inventory management as compared to the industry?

20) What can a poor or declining inventory turnover tell you?

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