Reference no: EM131585752

Earth’s Best Company has sales of $300,000, Cost of Goods Sold of 225,000, a net income of $15,000, and the following balance sheet:

Cash                           $ 10,000            Accounts payable                     $ 30,000

Receivables                    50,000            Other current liabilities                20,000

Inventories                    150,000            Long-term debt                           50,000

Net fixed assets              90,000            Common equity                         200,000

Total assets                $300,000            Total liabilities and equity        $300,000

Calculate the firm’s Inventory Turnover.