Use the Following Information for Boxter, Inc A)123 Times
B)9

question 119

Multiple Choice

Use the following information for Boxter, Inc., Clifford Company, Danforth Industries, and Evans Services to answer the question "Using LIFO, what is Boxter's inventory turnover for 2017 (to the closest decimal place) ?" $\begin{array}{|l|c|c|c|c|}\hline {\text { (amounts in \$ millions) }} & \text { Boxter } & \text { Clifford } & \text { Danforth } & \text { Evans } \\\hline \text { Inventory Method for 2016 \& 2017 } & \text { LIFO } & \text { FIFO } & \text { LIFO } & \text { FIFO } \\\hline 2016 \text { Ending inventory assuming LIFO } & \$ 324 & \text { N/A } & \$ 225 & \text { N/A } \\\hline 2016 \text { Ending inventory assuming FIFO } & \$ 427 & \$ 535 & \$ 310 & \$ 663 \\\hline 2017 \text { Ending inventory assuming LIFO } & \$ 436 & \text { N/A } & \$ 167 & \text { N/A } \\\hline 2017 \text { Ending inventory assuming FIFO } & \$ 578 & \$ 612 & \$ 209 & \$ 542 \\\hline \begin{array}{c}2016 \text { Current assets } \\\text { (reported on balance sheet) }\end{array} & \$ 1,677 & \$ 2,031 & \$ 1,308 & \$ 2,748 \\\hline 2016 \text { Current liabilities } & \$ 987 & \$ 1,209 & \$ 545 & \$ 1,200 \\\hline \begin{array}{l}2017 \text { Current assets } \\\text { (reported on balance sheet) }\end{array} & \$ 2,225 & \$ 2,605 & \$ 1,100 & \$ 2,390 \\\hline 2017 \text { Current liabilities } & \$ 1,306 & \$ 1,410 & \$ 465 & \$ 1,000 \\\hline 2017 \text { Cost of goods sold } & \$ 4,678 & \$ 1,410 & \$ 465 & \$ 1,000 \\\hline\end{array}$

• A)12.3 times
• B)9.3 times
• C)7.5 times
• D)6.4 times

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.

Consumer Surplus

The imbalance between the funds consumers are willing to dedicate to a good or service and the funds they actually dedicate.

Consumer Surplus

The discrepancy in the total spend consumers are willing to shoulder for a product or service as opposed to what they actually disburse.

Market Price

The present value at which a service or asset is available for purchase or sale in a market.