Question: Average inventory is calculated by ... average the current year's inventory and the previous year's inventory dividing current inventory by 2 subtracting accounts receivable and

 Average inventory is calculated by ... average the current year's inventory

Average inventory is calculated by ... average the current year's inventory and the previous year's inventory dividing current inventory by 2 subtracting accounts receivable and account payable from working capital multiplying inventory by the inventory turnover ratio

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