Rubber Company and Foam Company reported the following information in their financial statements, prior to their merger: Rubber Company Foam Company$millionsSalesCOGSInventoriesSalesCOGSInventories2016$57,000$40,775$13,340$88,560$64,200$33,800201555,00029,96016,88092,20048,80030,800 To the closest hundredth, how much is the 2016 inventory turnover for Rubber Company?Group of answer choicesa) 3.06b) 2.42c) 1.28d) 2.70

Inventory turnover = Cost of goods sold / Average inventory Average inventory = ( Beginning…

Answered: Rubber Company and Foam Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rubber Company and Foam Company reported the following information in their financial statements, prior to their merger:

	Rubber Company		Foam Company
$millions	Sales	COGS	Inventories	Sales	COGS	Inventories
2016	$57,000	$40,775	$13,340	$88,560	$64,200	$33,800
2015	55,000	29,960	16,880	92,200	48,800	30,800

To the closest hundredth, how much is the 2016 inventory turnover for Rubber Company?

Group of answer choices

a) 3.06

b) 2.42

c) 1.28

d) 2.70

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