Joe Ponzio, a financial advisor who bases his investigating strategies on the teachings of Warren Buffett, explains why inventory turnover rates matter to managers, owners, and investors on his August 7, 2009, blog post, He states: "The company doing five turns a year is often in better shape." Jerry Waite is interested in calculating his inventory turnover at retail for his flower and tree nursery. Net sales last year were $57,250, beginning inventory at retail was $23,750, and ending inventory at retail was $5,050. What is his inventory turnover at retail? Round to the nearest hundredth

To calculate the inventory turnover at retail, you need to use the formula:

Inventory Turnover at Retail = Net Sales / Average Inventory at Retail

Where:
- Net Sales refers to the total sales generated by the business during a specific period.
- Average Inventory at Retail is the average value of the inventory throughout the same period.

In this case, you are given the following information:
- Net Sales = $57,250
- Beginning Inventory at Retail = $23,750
- Ending Inventory at Retail = $5,050

To calculate the Average Inventory at Retail, you can use the formula:

Average Inventory at Retail = (Beginning Inventory at Retail + Ending Inventory at Retail) / 2

Let's calculate:

Average Inventory at Retail = ($23,750 + $5,050) / 2
Average Inventory at Retail = $14,400

Now, you can plug the values into the formula for inventory turnover at retail:

Inventory Turnover at Retail = $57,250 / $14,400
Inventory Turnover at Retail ≈ 3.97

Rounding to the nearest hundredth, Jerry Waite's inventory turnover at retail is approximately 3.97.