Calculate the Average Inventory and Inventory Turnover Ratios

question 98

Short Answer

Calculate the average inventory and inventory turnover ratios: $$\begin{array} { l l l l l l } & \text { Beginning } & \text { Ending } & \text { Average } & \text { Cost of } & \text { Inventory } \\\text { Company } & \text { Inventory } & \text { Inventory } & \text { Inventory } & \text { Goods Sold } & \text { Turnover } \\\text { Western, Inc. } & \$ 96,500 & \$ 82,200 & & \$ 551,800 &\end{array}$$

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Definitions:

Dynamite

An explosive made of nitroglycerin, sorbents (like silica), and stabilizers, invented by Alfred Nobel and used in mining and construction.

Nonvolatile Solute

A solute that does not easily vaporize into gas under existing conditions, typically leading to an increase in the boiling point of the solvent when dissolved.

Solvent

A substance, usually a liquid, capable of dissolving other substances (solutes) to form a solution.

Melting Point

The point at which a solid transitions into a liquid under the conditions of atmospheric pressure.