Dave Murray's Pontiac Dealership Has an Inventory Turnover of 5

Multiple Choice

Dave Murray's Pontiac dealership has an inventory turnover of 5. What does this figure mean?

A) The average value of Dave's inventory is five times his sales.
B) For every $1 Dave spends on inventory, he reaps $5 in sales.
C) Dave's beginning inventory is five times his ending inventory.
D) Dave's average inventory is five times greater than his cost of goods sold.
E) Dave sells and replaces his merchandise five times each year.