Question

if costs of goods sold (cogs) are $9,000 and average inventory is $3,000, what is the inventory turnover ratio? 9 3 6

Explanation:

Step1: Recall the formula for inventory turnover ratio

The formula for inventory turnover ratio is $\text{Inventory Turnover Ratio} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}}$.

Step2: Substitute the given values into the formula

We are given that COGS is $\$9,000$ and average inventory is $\$3,000$. Substituting these values into the formula, we get $\text{Inventory Turnover Ratio} = \frac{9000}{3000}$.

Step3: Perform the division

Calculating $\frac{9000}{3000}$, we divide 9000 by 3000, which equals 3.

Answer:

3