Reference no: EM132593440

Kent Inc. provided the following data for 2016 and 2017:

Inventory

December 31, 2016             $250,000

December 31, 2017          180,000

Cost of goods sold

2016              $650,000

2017              645,000

Gross margin

2016        $340,000

2017            430,000

Question 1: What are the inventory turnover ratio and the gross margin return on inventory investment for 2017?

Option A. Inventory turnover ratio = 3.00 times, The gross margin return on inventory investment = 200%

Option B. Inventory turnover ratio = 2.00 times, The gross margin return on inventory investment = 300%

Option C. Inventory turnover ratio = 3.09 times, The gross margin return on inventory investment = 20%

Option D. Inventory turnover ratio = 3.00 times, The gross margin return on inventory investment = 2%