The following information was extracted from the accounting records of Alaska Medical Supplies.

 

• Net credit sales
  • 20X5: $832,000
  • 20X4: $760,000
• 
  
• Cost of goods sold
  • 20X5: $440,000
  • 20X4: $350,000
• 
  
• Cash, Dec. 31
  • 20X5: $125,000
  • 20X4: $110,000
• 
  
• Accounts receivable, Dec. 31
  • 20X5: $180,000
  • 20X4: $140,000
• 
  
• Inventory, Dec. 31
  • 20X5: $70,000
  • 20X4: $50,000
• 
  
• Accounts payable, Dec. 31
  • 20X5: $115,000
  • 20X4: $108,000
     

Compute the inventory-turnover ratio for 20X5

Answer rating: 100% (QA)

The Inventory Turnover Ratio is the ratio showing how many times a company has sold and replaced inv... View the full answer