Caruso, Inc

question 39

Multiple Choice

Caruso, Inc.has an inventory turnover rate of 8 times.If its cost of goods sold is $150,000, then

• A) It sells its inventory 1,200 times per year.
• B) The company will report sales of $1,200,000.
• C) The gross margin will be $1,200,000.
• D) The company's average inventory is $18,750.