Question

+during 2018, sheffield corp. Purchased $3900000 of inventory. The cost of goods sold for 2018 was $4600000 and the ending inventory at december 31, 2018, was $450000. What was the inventory turnover for 2018

Answer 1

Cost of goods sold = opening inventory  + purchases -  Closing inventory

     $4600000  =  Opening inventory + $ 3900000 - $ 450000

     $4600000   = Opening inventory + $3450000

     Opening inventory = $4600000 - $3450000

     Opening inventory = $1150000