Liberty Corporation reported the following figures: (Click the icon to view the figures.) Liberty?s inventory turnover during 2016 was (amounts rounded) A. 6 times. B. 7 times. C. 8 times. D. not determinable from the data given. Solution Calculation of Inventory turnover Ratio: Inventory turnover Ratio = Cost of Goods sold / Average inventory Cost of Goods sold = $7055 Average inventory = ( Current year inventory + Last year inventory) / 2 =(1324 + 1060 ) / 2 = $1192 Hence Inventory turnover Ratio = 7055 / 1192 = 5.92 = 6 Times .