Becker Beverages Company Had Net Sales of $320,000 for the Year

question 51

Short Answer

Becker Beverages Company had net sales of $320,000 for the year. The beginning inventory at retail was $65,620, a mid-year inventory amounted to $60,800, and the ending inventory was $63,300.
A)What was the average inventory for the year?
B)What was the actual inventory turnover rate at retail for the year?

• A)What was the average inventory for the year?
• B)What was the actual inventory turnover rate at retail for the year?

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Definitions:

Franchisor

A business entity that grants the right to use its business model and brand to an independent operator, known as a franchisee, in exchange for a fee.

Small Business Ownership

The operation and management of a small enterprise, typically characterized by a limited number of employees and relatively low volume of sales.

Franchising

A business model that allows individuals or entities to operate a store or restaurant by licensing a brand and business system from a franchisor.

Disadvantages

Negative or less favorable aspects of a situation, plan, or decision.