Use the Following Data to Answer Questions 33-34 -To Two Decimals, Power Corp

question 39

Multiple Choice

Use the following data to answer questions 33-34.
Power Corp. reported the following data for calendar 2020: $\begin{array}{llr} \text { Total assets} &\$625,000\\ \text {Current assets } &325,000\\ \text { Total liabilities } &300,000\\ \text { Long-term liabilities} &145,000\\ \text { Inventories, Dec 31/19 } &110,000\\ \text { Inventories, Dec \( 31 / 20 \) } &100,000\\ \text { Net sales. } &1,550,000\\ \text { Gross profit} &920,000\\ \text { Net income} &205,000\end{array}$

-To two decimals, Power Corp.'s inventory turnover for 2020 is

• A) 14.76.
• B) 12.81.
• C) 6.00.
• D) 3.00.

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Definitions:

Raw Materials Inventory

The stock of basic materials that are used in the manufacturing process and are awaiting to be processed.

Cost of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, comprising both materials and labor.

Merchandise Inventories

Goods that a company intends to sell in the ordinary course of business, valued at the lower of cost or market.

Cash Collections

The process of receiving payments from customers for goods or services provided.