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The Following Information Pertains to Ortiz Company What Is the Inventory Turnover for Ortiz?
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question 72

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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.  Assets  Cash and short-term investments $45,000 Accounts receivable (net)  25,000 Inventory 12,000 Property, plant and equipment 210,000 Total Assets $292,000 Liabilities and Stockholders’ Equity  Current liabilities $50,000 Long-term liabilities 90,000 Stockholders’ equity-common 152,000 Total Liabilities and Stockholders’ Equity $292,000 Income Statement  Sales $120,000 Cost of goods sold 66,000 Gross profit 54,000 Operating expenses 30,000 Net income $24,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50\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?

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Definitions:

Small Intestine

The part of the gastrointestinal tract between the stomach and large intestine, where most of the digestion and absorption of food takes place.

Esophageal Hiatus

Hole in the diaphragm through which the esophagus passes.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing by contracting and expanding the lungs.

Epiglottis

The flap-like structure that closes off the larynx during swallowing.

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