a party suppilies store recored net sales of $423,400 for the year. the store's begining inventory at retail was $105,850 and its ending inventory inventory at retail was $127,020.what would be the inventory turnover at retail,rounded to the nearest tenth?
21r
BEGINNING INVENTORY+ENDING INVENTORY/(DEVIDED BY 2)= X. NET SALES/ DEVIDED BY X = ANSWER
$105,850 + $127,020 = $232,870/2 =$116,435
$423,400/$116,435= 3.63 ROUNDED TO 3.6
To calculate the inventory turnover at retail, we need to divide the net sales by the average inventory at retail.
The average inventory at retail can be found by adding the beginning inventory at retail and the ending inventory at retail, and then dividing by 2.
Average inventory at retail = (Beginning inventory at retail + Ending inventory at retail) / 2
Let's calculate:
Beginning inventory at retail = $105,850
Ending inventory at retail = $127,020
Average inventory at retail = ($105,850 + $127,020) / 2 = $116,435
Now, we can calculate the inventory turnover at retail by dividing the net sales by the average inventory at retail.
Inventory turnover at retail = Net sales / Average inventory at retail
Net sales = $423,400
Average inventory at retail = $116,435
Inventory turnover at retail = $423,400 / $116,435 ≈ 3.6
Therefore, the inventory turnover at retail, rounded to the nearest tenth, is 3.6.