How to calculate inventory turnover ratioin balance sheet?
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Determine the Cost of Goods from your annual income statement.
Add your Beginning Inventory to your Ending Inventory.
Divide the sum of the Beginning and Ending inventory in half to calculate the Average Inventory.
Calculate the Inventory Turnover by dividing the Cost of Goods Sold by the Average Inventory.
this is ur answer:
Add your Beginning Inventory to your Ending Inventory.
Divide the sum of the Beginning and Ending inventory in half to calculate the Average Inventory.
Calculate the Inventory Turnover by dividing the Cost of Goods Sold by the Average Inventory.
this is ur answer:
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