Wagon Department Store Had Net Credit Sales of $16,000,000 and Cost

question 20

Multiple Choice

Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year.The average inventory for the year amounted to $2,000,000.
-Inventory turnover for the year is

• A)8 times.
• B)15 times.
• C)7.5 times.
• D)5 times.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their liquidity.

Budgeted Disbursements

Planned financial outflows or payments calculated in advance as part of a budgeting process, often categorized and scheduled over a specific period.

Desired Balance

The target or goal for the balance of an account or budget at a specific point in time.

Budgeted Receipts

Expected cash or revenue amounts a business plans to receive over a certain period according to its budget.