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

question 119

Essay

Use the following to calculate the inventory turnover ratio for the year 2017.
$$\begin{array} { l l l } & 2017 & 2016 \\\text { Cost of Goods Sold } & 585,000 & 475,000 \\\text { Merchandise Inventory } & 320,000 & 295,000\end{array}$$

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Definitions:

Privately Owned

Properties or businesses that are owned by individuals or corporations rather than by the government or public.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own assets, incur liabilities, and conduct business.

Closely Held

A business structure where the ownership is concentrated in a small group of individuals, often family members.

Agency Relationships

A legal and fiduciary relationship between two parties, where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.