Answer:
c. 6.0 times.
Explanation:
The computation of the inventory turnover ratio is shown below:
As we know that
Inventory turnover ratio is
= Cost of goods sold ÷ average inventory
= $604,000 ÷ ($89,000 + $128,000) ÷ 2
= $604,000 ÷ $108,500
= 5.57 times
= 6 times
Hence, the inventory turnover ratio of Swifty is 6.0 times
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
