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Question
Based on the following data for the current year, what is the inventory turnover?
| Sales on account during year | $700,000 |
| Cost of merchandise sold during year | 270,000 |
| Accounts receivable, beginning of year | 45,000 |
| Accounts receivable, end of year | 35,000 |
| Merchandise inventory, beginning of year | 90,000 |
| Merchandise inventory, end of year | 110,000 |
a. 2.7
b. 9.7
c. 2.5
d. 3.0
Answer
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