Mayree Is the Owner of Spines Books, a Small Eclectic-Style

question 276

Multiple Choice

Mayree is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selecting hard-to-find books and magazines that her clientele enjoy. Recently, Mayree is experiencing a cash flow shortage, and she is concerned that she may be purchasing too many copies of each title. Having recently completed a business class, you suggest to Mayree that she calculate the ________ ratio for her store, and then compare it to other stores in her industry.

• A) current
• B) debt to equity
• C) return on equity
• D) inventory turnover

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Definitions:

Sales Growth

The increase in sales over a specific period, indicating the competitiveness and overall health of a company.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Debt/Interest Planning

The process of managing a company's or individual's debt load and the associated interest expenses, often to reduce costs or optimize tax implications.

Forecast Interest

The predicted amount of interest expenses or income, often used in financial planning and budgeting to estimate future financial performance.