Selected Data from the Financial Statements Are Provided Below

question 138

Multiple Choice

Selected data from the financial statements are provided below:

-Refer to Rainsoft Company. Assume that competitors in the industry have an average inventory turnover ratio of 20.8 times in 2021. Rainsoft's inventory turnover ratio for 2021 indicates that the company

• A)has too little inventory on hand at the end of 2021.
• B)is pricing its products too low.
• C)is selling its inventory much more quickly than the industry average.
• D)may have obsolete inventory or problems with sales.

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Definitions:

Physiological Origin

Refers to the biological basis or causes of a bodily function or characteristic.

Product Line

A group of related products under a single brand offered by a company.

Selective Demand

Consumer demand for specific brands or products rather than the general product category.

Multitouch Screens

Display technology that recognizes and responds to multiple simultaneous touchpoints, allowing for more complex interactions.