Which of the Following Is the Formula to Calculate a Firm's

Multiple Choice

Which of the following is the formula to calculate a firm's inventory turnover ratio?

A) Inventory Turnover = Sales ÷ Inventory
B) Inventory Turnover = Cost of goods sold ÷ Inventory
C) Inventory Turnover = Inventory ÷ Current assets
D) Inventory Turnover = Inventory ÷ Accounts receivables
E) Inventory Turnover = (Sales - Cost of goods sold) ÷ Inventory