Use the Following Information for Questions 64 Through 69

question 86

Multiple Choice

Use the following information for questions 64 through 69.
The following data are provided: Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The inventory turnover for 2015 is

• A) 6,400 ÷ 1,300.
• B) 4,200 ÷ 1,300.
• C) 6,400 ÷ 1,200.
• D) 4,200 ÷ 1,200.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses from total revenue, indicative of the company's profitability.

Cash Dividend

Cash rewards issued to investors of a certain class by a firm, as determined by the firm's board based on the company's profits.

Common Shares Outstanding

The number of shares that are currently owned by investors, including restricted shares owned by company officers and insiders.

Liabilities

Liabilities refer to the financial obligations or debts that a company owes, which must be paid to others.