Using Carrot Corp data. What is the inventory turn over for year 2?   a. 6 b. 4 c. 3 d. 5

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3. Using Carrot Corp data. What is the inventory turn over for year 2?
 
a. 6
b. 4
c. 3
d. 5

 

Carrots Corporation
Statement of Income
For the Year Ended November 30, Year 2
(in thousands of pesos)
Sales (all on credit)
Cost of goods sold
Gross margin
Operating expenses
P200,000
(120,000)
80,000
(38,000)
Net operating income
Interest expense
42,000
(2,000)
Net income before income tax
40,000
Income tax expense
(15,000)
P 25,000
Net income
Transcribed Image Text:Carrots Corporation Statement of Income For the Year Ended November 30, Year 2 (in thousands of pesos) Sales (all on credit) Cost of goods sold Gross margin Operating expenses P200,000 (120,000) 80,000 (38,000) Net operating income Interest expense 42,000 (2,000) Net income before income tax 40,000 Income tax expense (15,000) P 25,000 Net income
Financial statements of CARROTS Corporation are reproduced below. The market price of Carrot's ordinary share
was P20 per share on November 30, Year 2.
Carrots Corporation
Statement of Financial Position
As of November 30
(in thousands of pesos)
Year 2
Year 1
Cash
P 3,000
P 2,000
Trading securities
Accounts receivable (net)
Merchandise inventory
1,000
1,000
14,000
11,000
24,000
16,000
Total current assets
P 42,000
P 30,000
Property, plant, and equipment (net)
Long-term investments
68,000
60,000
10,000
10,000
Total assets
P120,000
P100,000
P 5,000
P 4,000
Accounts payable
Wages payable
1,000
1,000
Total current liabilities
P 6,000
P 5,000
Bonds payable, 10%
20,000
20,000
P 25,000
P 26,000
P 25,000
Total liabilities
Ordinary share capital, no par, 10,000,000 shares
Accumulated profits
Total shareholders' equity
Total liabilities and shareholders' equity
P 25,000
69.000
50,000
P 94,000
P 75,000
P120.000
P100,000
Transcribed Image Text:Financial statements of CARROTS Corporation are reproduced below. The market price of Carrot's ordinary share was P20 per share on November 30, Year 2. Carrots Corporation Statement of Financial Position As of November 30 (in thousands of pesos) Year 2 Year 1 Cash P 3,000 P 2,000 Trading securities Accounts receivable (net) Merchandise inventory 1,000 1,000 14,000 11,000 24,000 16,000 Total current assets P 42,000 P 30,000 Property, plant, and equipment (net) Long-term investments 68,000 60,000 10,000 10,000 Total assets P120,000 P100,000 P 5,000 P 4,000 Accounts payable Wages payable 1,000 1,000 Total current liabilities P 6,000 P 5,000 Bonds payable, 10% 20,000 20,000 P 25,000 P 26,000 P 25,000 Total liabilities Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity P 25,000 69.000 50,000 P 94,000 P 75,000 P120.000 P100,000
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