Problema Solution
Assume Staley's had net sales of $72,000 per day, beginning inventory of $22,000, and ending inventory at retail of $18,900. What was the inventory turnover at retail?
Answer provided by our tutors
Inventory turnover at retail is net sales divided by average inventory at cost.
net sales per day = $72,000
net sales per year = $72,000*365
average inventory at cost = (1/2)(22,000 + 18,900)
Inventory turnover at retail = net sales per year/average inventory at cost
Inventory turnover at retail = (72,000*365)/((1/2)(22,000 + 18,900))
Inventory turnover at retail = 1,285.09