The Operations Manager at a Lumber Supply Company Is Analyzing

question 6

Multiple Choice

The operations manager at a lumber supply company is analyzing how well his company is using its resources. He knows that sales for the past year were $3.5 million. He also knows that he had $850,000 in inventory twelve months ago, and he currently has $550,000. What important ratio can he calculate from this information?

• A) He can determine that his inventory turnover is 5.
• B) He can determine that his inventory turnover is 11.6.
• C) He can determine that his net profit margin is 20%.
• D) He can determine that his accounts receivable turnover is 20%.

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Definitions:

Disposable Income

The net income available to an individual or household after all taxes have been deducted, available for spending or saving.

Savings

The portion of income that is not spent on consumption but rather set aside for future use or investment.

C

In programming, C is a high-level and general-purpose programming language that is widely used for system and application software, device drivers, and embedded firmware.

Disposable Income

Income available to an individual or household after deducting income taxes and other mandatory charges.