Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

A) 1.0
B) 1.5
C) 2.0
D) 3.0
E) 24.0

Question

Pablo Sisneros · Accepted Answer

Final Answer : C, Explanation :  The stock turn rate is calculated as (Cost of Goods Sold) / (Average Inventory). Leon sold $2,400 worth of kites ($2,500 - $100). Assuming the average inventory is the initial investment, the stock turn rate is $2,400 / $1,200 = 2.0.

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

A) 1.0
B) 1.5
C) 2.0
D) 3.0
E) 24.0

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Learning Objectives

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Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.A) 1.0B) 1.5C) 2.0D) 3.0E) 24.0

Definitions

Learning Objectives

Learning Objectives

Related questions

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

A) 1.0
B) 1.5
C) 2.0
D) 3.0
E) 24.0