The following information was available for Swifty Corporation at December 31, 2017: beginning inventory $89000; ending inventory $128000; cost of goods sold $604000; and sales $992000. Swifty inventory turnover ratio (rounded) in 2017 was

5.57

Explanation:

Calculation to determine what Swifty inventory turnover ratio (rounded) in 2017 was

Using this formula

Inventory turnover ratio =Cost of goods sold/Average Inventory

Let plug in the

Inventory turnover ratio=$604000/[($89000+$128000)/2]

Inventory turnover ratio=$604000/($217,000/2)

Inventory turnover ratio=$604000/108,500

Inventory turnover ratio=5.57

Therefore Swifty inventory turnover ratio (rounded) in 2017 was 5.57

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