Calculate palmers inventory turnover

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Reference no: EM13928657

Palmer Chocolates, a maker of chocolates that specializes in Easter candy, had the following inventories over the past year:

Month

Inventory Amount

January

$25,000,000

February

60,000,000

March

90,000,000

April

30,000,000

May

20,000,000

June

22,000,000

July

25,000,000

August

38,000,000

September

50,000,000

October

60,000,000

November

70,000,000

December

30,000,000

Palmer had sales of $290 million over the past year. Cost of sales constituted 50 percent of sales. Calculate Palmer's inventory turnover using beginning of year inventory, end of year inventory, and a monthly average inventory. Which method do you feel is most appropriate? Why?

Reference no: EM13928657

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