A retailer’s total sales are $1,000,000 and the gross margin percentage is 60%. Thebeginning and ending inventory balances are $240,000 and $260,000, respectively.What is the inventory turnover?a. 1.60b. 2.40c. 3.40d. 3.60

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Chapter15: Financial Statement Analysis
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Problem 46E
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A retailer’s total sales are $1,000,000 and the gross margin percentage is 60%. The
beginning and ending inventory balances are $240,000 and $260,000, respectively.
What is the inventory turnover?
a. 1.60
b. 2.40
c. 3.40
d. 3.60

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