From the Given Data for the Current Year, Determine the Inventory

question 60

Multiple Choice

From the given data for the current year, determine the inventory turnover. ? $$\begin{array} { l r } \text { Net sales on account during the year } & \$ 316,780 \\\text { Cost of merchandise sold during the year } & 688,500 \\\text { Accounts receivable, beginning of year } & 47,000 \\\text { Accounts receivable, end of year } & 62,000 \\\text { Inventory, beginning of year } & 157,000 \\\text { Inventory, end of year } & 149,000\end{array}$$

• A) 3.8
• B) 5.1
• C) 4.5
• D) 2.7

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Definitions:

Sherman Act

A landmark federal statute in the antitrust law of the United States, aimed at preserving fair competition by prohibiting monopolies and other practices that restrained trade.

Clayton Act

The Clayton Act is United States antitrust law enacted in 1914, aimed at promoting fair competition and preventing monopolies, anti-competitive mergers, and unethical business practices.

Chicago School

An economic perspective that emphasizes free markets, minimal governmental intervention, and the rationality of economic agents, primarily associated with the University of Chicago.

Antitrust Analysis

The examination of business practices and their impact on market competition, often to determine if they comply with antitrust laws.