Hot IncHas the Below Financial Information $\underline{\text { Income Statement Info.} }$

Essay

Hot Inc.has the below financial information.Calculate the inventory turnover ratio and explain how it is used.(show your work).
$\underline{\text { Income Statement Info.} }$

Sales                                    300,000
Cost of Goods Sold             $\underline{100,000}$
Gross Marein                       200,000


$\underline{\text { Balance Sheet Info. }}$
Beginning B alance Inventory                        150,000
Ending Balance Inventory                              100,000



$\underline{\text { Other Info: }}$

Purchases                                                        50,000