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Financial Accounting

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Inventory Cost Ratios: Inventory Turnover

FINACT-BUGCJK

Pine Manufacturing Company has provided the following information:

Account 2019 2018 2017
Net Credit Sales \$250,000 \$240,000 \$255,000
Cost of Goods Sold \$137,500 \$139,200 \$137,700
Gross Margin \$112,500 \$100,800 \$117,300
Accounts Receivable \$34,200 \$35,100 \$33,300
Inventory \$24,500 \$26,400 \$21,000


What is the company’s Inventory Turnover ratio in 2019? (Round to nearest one hundredth).

A

7.22

B

4.42

C

5.87

D

5.40