Ashley, who owns the wildly successful Tattoo Temple, also runs Hula Hoop Heaven, a store devoted to people who do not work and have devoted their lives full-time to hula hooping. Hula Hoop Heaven has reported accounts receivable of $45,000, current assets of $150,000, a gross margin percentage of 50%, fixed assets of $250,000, an asset turnover of 2, an expense ratio of 25%, and a balance sheet inventory of $100,000. What is the inventory turnover for Hula Hoop Heaven?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ashley, who owns the wildly successful Tattoo Temple, also runs Hula Hoop Heaven, a
store devoted to people who do not work and have devoted their lives full-time to hula
hooping. Hula Hoop Heaven has reported accounts receivable of $45,000, current
assets of $150,000, a gross margin percentage of 50%, fixed assets of $250,000, an
asset turnover of 2, an expense ratio of 25%, and a balance sheet inventory of
$100,000. What is the inventory turnover for Hula Hoop Heaven?
O
O
1.5
2
4
6
None of the above
Transcribed Image Text:Ashley, who owns the wildly successful Tattoo Temple, also runs Hula Hoop Heaven, a store devoted to people who do not work and have devoted their lives full-time to hula hooping. Hula Hoop Heaven has reported accounts receivable of $45,000, current assets of $150,000, a gross margin percentage of 50%, fixed assets of $250,000, an asset turnover of 2, an expense ratio of 25%, and a balance sheet inventory of $100,000. What is the inventory turnover for Hula Hoop Heaven? O O 1.5 2 4 6 None of the above
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