Question

a company has an average inventory at cost of $15,810, and cost of goods sold for the same period is $87,501. find the stock turnover at cost. the stock turnover at cost is \square. (round to two decimal places.)

Explanation:

Step1: Recall the formula for stock turnover at cost

The formula for stock turnover at cost is $\text{Stock Turnover at Cost} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory at Cost}}$.

Step2: Substitute the given values

We are given that the cost of goods sold is $\$87,501$ and the average inventory at cost is $\$15,810$. Substituting these values into the formula, we get $\text{Stock Turnover at Cost} = \frac{87501}{15810}$.

Step3: Perform the division

Calculating $\frac{87501}{15810} \approx 5.53$.

Answer:

5.53