Shaffer company presents the following data for 2012. net sales, 2012 $3,007,124 net sales, 2011 93,247 cost of goods sold, 2012 2,000,326 cost of goods sold, 2011 1,000,120 inventory, beginning of 2012 341,169 inventory, end of 2012 376,526

5.6

Explanation:

Here is the question for the data given: What is the merchandise inventory turnover for 2012?

Given: Inventory, beginning of 2012- $341,169;

            Inventory, end of 2012- $376,526.

            Cost of goods sold, 2012- $2000326.

Formula; inventory turnover rate =      

First, lets calculate average of inventory

Average inventory=

Average inventory=

Now, lets find out inventory turnover rate.

Inventory turnover rate=

∴ Inventory turnover rate is 5.57 ≅ 5.6            

answer; is usually (less than) the socially optimal level of consumption;