Refer to following financial information from a company. Compute the company's inventory turnover for Year 2. Year 2 Year 1 Cash $ 38,800 $ 33,550 Short term investments 103,000 66,500 Accounts receivable, net 92,000 86,000 Merchandise inventory 127,500 131,500 Prepaid expenses 13,400 11,000 Plant assets 394,500 344,500 Accounts payable 106,900 114,300 Net sales 717,500 682,500 Cost of goods sold 396,500 381,500 Answer: A. 3.02 B. 3.11 C. 5.63 D. 3.58 E. 3.06
Refer to following financial information from a company. Compute the company's inventory turnover for Year 2. Year 2 Year 1 Cash $ 38,800 $ 33,550 Short term investments 103,000 66,500 Accounts receivable, net 92,000 86,000 Merchandise inventory 127,500 131,500 Prepaid expenses 13,400 11,000 Plant assets 394,500 344,500 Accounts payable 106,900 114,300 Net sales 717,500 682,500 Cost of goods sold 396,500 381,500 Answer: A. 3.02 B. 3.11 C. 5.63 D. 3.58 E. 3.06
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Refer to following financial information from a company. Compute the company's inventory turnover for Year 2.
| Year 2 | Year 1 | |
|
Cash |
$ 38,800 | $ 33,550 |
| Short term investments | 103,000 | 66,500 |
| 92,000 | 86,000 | |
| Merchandise inventory | 127,500 | 131,500 |
| Prepaid expenses | 13,400 | 11,000 |
| Plant assets | 394,500 | 344,500 |
| Accounts payable | 106,900 | 114,300 |
| Net sales | 717,500 | 682,500 |
| Cost of goods sold | 396,500 | 381,500 |
Answer:
A. 3.02
B. 3.11
C. 5.63
D. 3.58
E. 3.06
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