The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic containers: Net sales $ 2,460,000 Less: Cost of goods sold: Inventory, January 1 $ 630,000 Net...

The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic containers:

Net sales                                                                                $ 2,460,000
Less: Cost of goods sold:
Inventory, January 1                                       $  630,000
Net purchases                                                 1,900,000
Inventory, December 31
(690,000)
1,840,000

Gross profit
$ 620,000

Required:
1. Determine Rowan’s inventory turnover.
2. What information does this ratio provide?