Industrialization Automation Company has a quick ratio of 2.00; $24,750 in cash; $13,750 in accounts receivable; some inventory; total current assets of $55,000; and total current liabilities of $19,250. In its most recent annual report, IAC reported annual sales of $100,000 and a cost of goe sold equal to 65% of annual sales. How many times is Industrialization Automation Company selling and replacing its inventory? O 6.06x O 0.35x O 4.33x O 3.94x The inventory turnover ratio across companies in IAC's industry is 3.35. Based on this information, which of the following statements is true for Industrialization Automation Company?
Industrialization Automation Company has a quick ratio of 2.00; $24,750 in cash; $13,750 in accounts receivable; some inventory; total current assets of $55,000; and total current liabilities of $19,250. In its most recent annual report, IAC reported annual sales of $100,000 and a cost of goe sold equal to 65% of annual sales. How many times is Industrialization Automation Company selling and replacing its inventory? O 6.06x O 0.35x O 4.33x O 3.94x The inventory turnover ratio across companies in IAC's industry is 3.35. Based on this information, which of the following statements is true for Industrialization Automation Company?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Industrialization Automation Company has a quick ratio of 2.00; $24,750 in cash; $13,750 in accounts receivable; some inventory; total current
assets of $55,000; and total current liabilities of $19,250. In its most recent annual report, IAC reported annual sales of $100,000 and a cost of goods
sold equal to 65% of annual sales. How many times is Industrialization Automation Company selling and replacing its inventory?
O6.06x
O 0.35x
O 4.33x
O 3.94x
The inventory turnover ratio across companies in IAC's industry is 3.35. Based on this information, which of the following statements is true for
Industrializ ion Automation Company?
O Industrialization Automation Company is holding more inventory per dollar of COGS compared to the industry average.
IAC is holding less inventory per dollar of COGS compared to the industry average.
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