Question

which two financial statements does the inventory turnover ratio use? statement of cash flows and income statement balance sheet and statement of cash flows income statement and balance sheet

Explanation:

The inventory turnover ratio is calculated as $\frac{\text{Cost of Goods Sold (from Income Statement)}}{\text{Average Inventory (from Balance Sheet)}}$. So it uses data from the income statement (for COGS) and balance sheet (for inventory), not the statement of cash flows.

Answer:

C. income statement and balance sheet (assuming the third option is labeled C; if not, the option "income statement and balance sheet")