Benson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 $720,000 Accounts receivable, December 31 960,000 Merchandise inventory, January 1 900,000 Merchandise inventory, December 31 1,020,000 Gross sales Sales returns and allowances 4,800,000 180,000 Net sales 4,620,000 Cost of goods sold 3,360,000 Income before interest and taxes 720,000 Interest on bonds 192,000 Net income 384,000 The inventory turnover is: a. 5 times per year. b. 4 times per year. c. 4.8125 times per year. d. 3.5 times per year.

Benson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 $720,000 Accounts receivable, December 31 960,000 Merchandise inventory, January 1 900,000 Merchandise inventory, December 31 1,020,000 Gross sales Sales returns and allowances 4,800,000 180,000 Net sales 4,620,000 Cost of goods sold 3,360,000 Income before interest and taxes 720,000 Interest on bonds 192,000 Net income 384,000 The inventory turnover is: a. 5 times per year. b. 4 times per year. c. 4.8125 times per year. d. 3.5 times per year.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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