SRC, Inc., sells its inventory in an average of 43 days and collects its receivables in 3.6 days, on average. What is the inventory turnover rate? Assume a 365-day year.

8.49 times

Explanation:

Inventory turnover is a term in accounting that describes the number of times inventory of a company is sold  or used in a certain period, usually measured in a year.

It is measured by dividing the number of days in a year by the average days in which the inventory are sold.

Hence in this case inventory turnover is 365 days / 43 days = 8.49times

Therefore, the inventory turnover is 8.49times

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