Ward Inc. had a beginning inventory of \( \$ 26,800 \) and an ending inventory of \( \$ 52,650 \). If the cost of goods sold was \( \$ 305,000 \), calculate the inventory turnover. (Round to the nearest tenth.) Select one: a. 7.4 times b. 8.7 times c. 6.8 times d. 7.7 times

To calculate the inventory turnover, you first need to find the average inventory. The formula for average inventory is: \[ \text{Average Inventory} = \frac{\text{Beginning Inventory} + \text{Ending Inventory}}{2} \] Plugging in the values: \[ \text{Average Inventory} = \frac{26,800 + 52,650}{2} = \frac{79,450}{2} = 39,725 \] Now, you can calculate the inventory turnover using the formula: \[ \text{Inventory Turnover} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}} \] Substituting in the values: \[ \text{Inventory Turnover} = \frac{305,000}{39,725} \approx 7.7 \] So the inventory turnover is approximately 7.7 times. The correct answer is d. 7.7 times.