Corona Company's Balance Sheet Accounts Follow: What Is Corona

question 172

Multiple Choice

Corona Company's balance sheet accounts follow: What is Corona Company's inventory turnover ratio for 2014, assuming net sales and gross profit for the period were $1,236,783, $927,587 respectively?

• A) 10.96
• B) 3.25
• C) 3.00
• D) 3.65
• E) 4.20

---

Definitions:

Trade Secret

A type of intellectual property comprising formulas, practices, processes, designs, instruments, patterns, or compilations of information that are not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Short Run

A period of time in which at least one input, typically capital, is fixed, and producers can only adjust the variable inputs like labor.

Long Run

A period in economics during which all inputs and operations can be varied, allowing for the adjustment to changes in market conditions or demand.

Very Long Run

In microeconomics, a period of time long enough that technology can change and firms can introduce new products.