Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 32

Trophy Masters had net sales for the year of $145,000. The beginning inventory at retail was $36,000, and the ending inventory at retail amounted to $40,300. The inventory turnover rate published as the industry standard for a business of this size is 4.9 times.
a. Calculate the average inventory and actual inventory turnover rate for the company.
b. If the turnover rate is less than 4.9 times, calculate the target average inventory needed to theoretically come up to industry standards.