The income statement of Racquel Jeter Consulting (RJC) has a gross profit of $107,000, and its gross profit margin is 42%. RJC's inventory turnover is closest to  A.

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
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The income statement of Racquel Jeter Consulting (RJC) has a gross profit of $107,000, and its gross profit margin is 42%. RJC's inventory turnover is closest to 

A.

2.02 times.

B.

3.02 times.

C.

4.02 times.

D.

5.02 times.

**Racquel Jeter Consulting December 31 Balance Sheets**  
*(in thousands of dollars)*

### Assets
- **Cash**  
  - 2018: $102,850  
  - 2017: $89,725  
- **Accounts receivable**  
  - 2018: $103,365  
  - 2017: $85,527  
- **Inventories**  
  - 2018: $38,444  
  - 2017: $34,982  
- **Total current assets**  
  - 2018: $244,659  
  - 2017: $210,234  
- **Net fixed assets**  
  - 2018: $67,165  
  - 2017: $42,436  
- **Total assets**  
  - 2018: $311,824  
  - 2017: $252,670  

### Liabilities and Equity
- **Accounts payable**  
  - 2018: $30,761  
  - 2017: $23,109  
- **Accruals**  
  - 2018: $30,477  
  - 2017: $22,656  
- **Notes payable**  
  - 2018: $16,717  
  - 2017: $14,217  
- **Total current liabilities**  
  - 2018: $77,955  
  - 2017: $59,982  
- **Long-term debt**  
  - 2018: $76,264  
  - 2017: $63,914  
- **Total liabilities**  
  - 2018: $154,219  
  - 2017: $123,896  
- **Common stock**  
  - 2018: $100,000  
  - 2017: $90,000  
- **Retained earnings**  
  - 2018: $57,605  
  - 2017: $38,774  
- **Total common equity**  
  - 2018: $157,605  
  - 2017: $128,774  
- **Total liabilities and equity**  
  - 2018: $311,824  
  - 2017: $252,670  

This balance sheet provides an overview of the financial position of Rac
Transcribed Image Text:**Racquel Jeter Consulting December 31 Balance Sheets** *(in thousands of dollars)* ### Assets - **Cash** - 2018: $102,850 - 2017: $89,725 - **Accounts receivable** - 2018: $103,365 - 2017: $85,527 - **Inventories** - 2018: $38,444 - 2017: $34,982 - **Total current assets** - 2018: $244,659 - 2017: $210,234 - **Net fixed assets** - 2018: $67,165 - 2017: $42,436 - **Total assets** - 2018: $311,824 - 2017: $252,670 ### Liabilities and Equity - **Accounts payable** - 2018: $30,761 - 2017: $23,109 - **Accruals** - 2018: $30,477 - 2017: $22,656 - **Notes payable** - 2018: $16,717 - 2017: $14,217 - **Total current liabilities** - 2018: $77,955 - 2017: $59,982 - **Long-term debt** - 2018: $76,264 - 2017: $63,914 - **Total liabilities** - 2018: $154,219 - 2017: $123,896 - **Common stock** - 2018: $100,000 - 2017: $90,000 - **Retained earnings** - 2018: $57,605 - 2017: $38,774 - **Total common equity** - 2018: $157,605 - 2017: $128,774 - **Total liabilities and equity** - 2018: $311,824 - 2017: $252,670 This balance sheet provides an overview of the financial position of Rac
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