Selected Information from the 2011 and 2010 Financial Statements of SCL

question 17

Multiple Choice

Selected information from the 2011 and 2010 financial statements of SCL Corporation is presented below:


Refer to the SCL Corporation information above. SCL's merchandise inventory turnover for 2011 is

• A) 3.43.
• B) 5.68.
• C) 6.63.
• D) 6.79.

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Definitions:

Dividends Paid

The part of a company's profits paid out to shareholders, typically as cash or shares.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money, or, for corporations, the price paid for the use of borrowed capital.

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends.

Net Income

Net income is the total profit of a company after all expenses and taxes have been deducted from total revenue.