The Following Information Is Available for Charles Company The Inventory Turnover for 2014 Is
A) 6

question 1

Multiple Choice

The following information is available for Charles Company: $\begin{array}{lrr}&2014&2013\\\text { Accounts receivable } & \$ 460,000 & \$ 500,000 \\\text { Inventory } & 340,000 & 420,000 \\\text { Net credit sales } & 2,470,000 & 1,400,000 \\\text { Cost of goods sold } & 1,860,000 & 1,060,000 \\\text { Net income } & 300,000 & 170,000\end{array}$ The inventory turnover for 2014 is

• A) 6.2 times.
• B) 4.9 times.
• C) 5.5 times.
• D) 4.4 times.

---

Definitions:

ATC Curve

The Average Total Cost (ATC) curve is a graphical representation showing how the average total costs of production for a firm change as the quantity of output produced changes.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and all firms are price takers.

Industry Demand Curve

A graphical representation of the quantity of goods that buyers in an industry are willing and able to purchase at various prices, holding other factors constant.