The Following Information Pertains to Ortiz Company What Is the Inventory Turnover for Ortiz?
A) 3,2 Times

question 72

Multiple Choice

The following information pertains to Ortiz Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } &25,000 \\\text { Inventory } & 12,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets }&\$292,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 152,000 \\\text { Total Liabilities and Stockholders' Equity }&\$292,000\\\\\text { Income Statement }\\\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross profit } & 54,000 \\\text { Operating expenses } & 30,000 \\ \text { Net income } & \$ 24,000\\\\ \text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share } & .50\end{array}$ What is the inventory turnover for Ortiz?

• A) 3,2 times
• B) 5.5 times
• C) 11 times
• D) 0.18 times

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Definitions:

Anterior Pituitary

The front portion of the pituitary gland, producing and secreting various hormones that regulate several physiological processes including growth, reproduction, and metabolism.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including temperature control, hunger, and thirst.

Capillary Bed

Networks of small blood vessels that facilitate the exchange of materials (such as oxygen and carbon dioxide) between the blood and tissues.

Sweat Gland

A specialized epidermal structure involved in the production of sweat, playing a key role in body temperature regulation.