Based on the Following Data for the Current Year, What

question 20

Multiple Choice

Based on the following data for the current year, what is the inventory turnover? Sales on account during year
$700,000
Cost of merchandise sold during year
270,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year

• A) 2.7 110,000
• B) 9.7
• C) 2.5
• D) 3.0

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained within the company instead of being paid out to shareholders as dividends.

Shareholders

Individuals or entities that own a share or multiple shares of stock in a corporation, granting them ownership interests and rights within the company.

Total Value

The sum of all monetary values of goods, services, or assets.

Initial Public Offering

The first sale of stock by a company to the public, marking the transition from private to public company.