The following information pertains to Bonita Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 48000 Accounts receivable (net) 25000 Inventory 25000 Property, plant and equipment 200000 Total Assets $298000 Liabilities and Stockholders’ Equity Current liabilities $ 51000 Long-term liabilities 84000 Stockholders’ equity—common 163000 Total Liabilities and Stockholders’ Equity $298000 Income Statement Sales (net) $ 115000 Cost of goods sold 65000 Gross profit 50000 Operating expenses 27000 Net income $ 23000 Number of shares of common stock 4000 Market price of common stock $22 Dividends per share 0.40 What is the inventory turnover for Bonita? 3.55 times 2.60 times 5.60 times 0.38 times
The following information pertains to Bonita Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 48000 Accounts receivable (net) 25000 Inventory 25000 Property, plant and equipment 200000 Total Assets $298000 Liabilities and Stockholders’ Equity Current liabilities $ 51000 Long-term liabilities 84000 Stockholders’ equity—common 163000 Total Liabilities and Stockholders’ Equity $298000 Income Statement Sales (net) $ 115000 Cost of goods sold 65000 Gross profit 50000 Operating expenses 27000 Net income $ 23000 Number of shares of common stock 4000 Market price of common stock $22 Dividends per share 0.40 What is the inventory turnover for Bonita? 3.55 times 2.60 times 5.60 times 0.38 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information pertains to Bonita Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
|
Assets
|
|
|---|---|
|
Cash and short-term investments
|
$ 48000
|
|
|
25000
|
|
Inventory
|
25000
|
|
Property, plant and equipment
|
200000
|
|
Total Assets
|
$298000
|
|
Liabilities and
|
|
|---|---|
|
Current liabilities
|
$ 51000
|
|
Long-term liabilities
|
84000
|
|
Stockholders’ equity—common
|
163000
|
|
Total Liabilities and Stockholders’ Equity
|
$298000
|
|
Income Statement
|
|
|---|---|
|
Sales (net)
|
$ 115000
|
|
Cost of goods sold
|
65000
|
|
Gross profit
|
50000
|
|
Operating expenses
|
27000
|
|
Net income
|
$ 23000
|
| Number of shares of common stock | 4000 |
| Market price of common stock | $22 |
| Dividends per share | 0.40 |
What is the inventory turnover for Bonita?
3.55 times
2.60 times
5.60 times
0.38 times
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