Given the Following Information, Calculate the Inventory Turnover for ABC

question 15

Multiple Choice

Given the following information, calculate the inventory turnover for ABC Co. for 2006 (pick closest number) . $$\begin{array} { l c c } \text { (in thousands of dollars) } & 2006 & 2005 \\\text { Sales } & \$ 19,535 & \$ 15,470 \\\text { Cost of goods sold } & \$ 15,101 & \$ 11,184 \\\text { Inventory } & \$ 2,809 & \$ 2,260\end{array}$$

• A)8.96
• B)7.22
• C)6.93
• D)5.96

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Definitions:

Determinants

Factors or conditions that exert influence on the outcome of a process or the characteristics of an entity.

Trucking Industry

A sector of the transportation industry that specializes in the movement of goods and materials over land, typically using large vehicles like trucks.

Flexibility

The capability to adapt or change according to different conditions, requirements, or environments, often viewed as a desirable quality in various contexts.

Equipment Options

Refers to the variety of choices available for machinery and tools required for the production process or offered to customers.