The Following Information Pertains to Soho Company What Is the Inventory Turnover for Soho?
A) 2 Times

question 29

Multiple Choice

The following information pertains to Soho Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Property, plant and equipment } & \$ 210,000 \\\text { Inventory } & 20,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Cash and short-term investments } & 40,000 \\\quad \text { Total Assets } & \$ 295,000\\\\\text { Equity and Liabilities }\\\text { Shareholders' equity\_ordinary } & \$ 150,000 \\\text { Non-current liabilities } & 85,000 \\\text { Current liabilities } & 60,000 \\\text { Total Equity and Liabilities } & \$ 295,000 \\\\\text { Income Statement }\\\text { Sales revenue } & \$ 85,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 40,000 \\\text { Operating expenses } & 20,000 \\\quad \text { Net income } & \$ 20,000 \\\\\text { Number of ordinary shares } & 6,000 \\\text { Market price of ordinary shares } & \$ 20 \\\text { Dividends per share } & .90\end{array}$ What is the inventory turnover for Soho?

• A) 2 times
• B) 2.3 times
• C) 1 time
• D) .44 times

Understand the elements of simple request messages and the significance of clarifying what you want the reader to know or do.

Comprehend the structure and content requirements for crafting effective claim or adjustment messages.

Recognize the importance of tone in writing business messages, including routine ones.

Differentiate between direct and indirect approaches in business communication and know when to use each.

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Definitions:

Capital Expenditure

Funds used by an organization to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.