If a vendor had a cost of goods sold of $8,000 and an average inventory investment of $500, what was the vendor's inventory turnover?

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To calculate the inventory turnover ratio, you divide the cost of goods sold (COGS) by the average inventory investment. The formula is:

Inventory Turnover = COGS / Average Inventory

Given the values:

Cost of Goods Sold = $8,000
Average Inventory = $500

Substituting these values into the formula:

Inventory Turnover = $8,000 / $500 = 16

This calculation shows that the vendor turned over their inventory 16 times during the period. A higher inventory turnover ratio indicates efficient inventory management and a strong product demand, indicating that the vendor is effectively balancing their stock levels. Thus, the correct answer is 16, reflecting the vendor's performance in managing inventory.