The Following Information Was Available for the Year Ended December

question 35

Multiple Choice

The following information was available for the year ended December 31, 2019: $\begin{array}{lr}\text { Net sales } & \$ 300,000 \\\text { Cost of goods sold } & 210,000 \\ \text { Average accounts receivable for the year } & 15,000 \\ \text { Accounts receivable at year-end } & 18,000 \\\text { Average inventory for the year } & 60,000 \\\text { Inventory at year-end } & 70,000\end{array}$ The inventory turnover for 2019 was:

• A)3.0 times
• B)3.5 times
• C)4.3 times
• D)5.0 times

Understand the principles of Just-in-Time (JIT) manufacturing and Total Quality Management (TQM).

Differentiate between financial and managerial accounting, including their focuses, uses, and user bases.

Identify and explain the components and importance of the cost of goods manufactured schedule.

Comprehend the calculation and significance of inventory turnover ratios.

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Definitions:

Net Capital Spending

This term refers to the total amount a company spends on acquiring or maintaining fixed assets, minus any sales of these assets, over a given period.

Earnings Per Share

A financial metric that measures the amount of a company's profit attributable to each outstanding share of common stock, calculated as net income divided by the number of outstanding shares.

Shares Of Stock

Equal units of ownership in a corporation, representing a claim on part of the corporation’s assets and earnings.

Net Capital Spending

The total expenditure on fixed assets minus any sales of fixed assets, reflecting a company's investment in its physical assets.