v4 reading 46

why is it that the CFAI solutions take ending inventory balance for calculaing inventory turnover for all qns in the reading on working capital mgmt? aren’t we supposed to take the average = (ending + beginning)/2

Turnover ratios usually require average’s. If you are provided with averages, for turnover ratios use em’, if you’re not then just use the figure as given.

Use averages in your exam