Use the Following to Calculate the Inventory Turnover Ratio for the Year

question 5

Essay

Use the following to calculate the inventory turnover ratio for the year 2019.
$\begin{array}{lll}&2019&2018\\\text { Cost of Goods Sold } & 585,000 & 475,000 \\\text { Merchandise Inventory } & 320,000 & 295,000\end{array}$

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Definitions:

High Price

A situation where the cost of a good or service is considered to be above the average or expected price.

Low Price

A situation where the cost of a good or service is relatively minimal compared to similar goods, often due to high supply, low demand, or competitive strategies.

Tit-For-Tat Strategy

A cooperative strategy in game theory where a player in a competition responds to an opponent's action with similar action, often used to enforce cooperative behavior.

Weekly Profit

The total income a business generates in one week after all expenses have been subtracted.