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Question:

What will the inventory turnover rate be for a pharmacy if the inventory value is $255,000 and the pharmacy has sales of $3 million?

A 11.76
Explaination

Answer = 11.76. Inventory turns can be calculated by dividing total sales by the inventory value or the average inventory value. Sales ($3,000,000)/ Inventory ($255,000) = 11.76 inventory turns.