A retail company has an average inventory turnover ratio of 12 and an average inventory value of . Calculate the cost of goods sold (COGS) for the company.
To calculate the cost of goods sold (COGS) for the company, we can use the formula:
COGS = Average Inventory Value / Inventory Turnover Ratio
Plugging in the values given:
COGS = 50,000
Therefore, the cost of goods sold for the company is $50,000.
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