Livingston Lumber Company begins the year with $200,000 of goods in inventory. At year-end, the amount in

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Livingston Lumber Company begins the year with $200,000 of goods in inventory. At year-end, the amount in inventory has increased to $230,000. Cost of goods sold for the year is $1,600,000. Calculate Livingston’s inventory turnover (round calculations to two decimal places). Assuming an industry average inventory turnover of 4, what is your assessment of Livingston’s inventory management?

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Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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