The Following Information Pertains to Unique Company

question 135

Multiple Choice

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the inventory turnover for this company?

• A) 2 times
• B) 2.25 times
• C) 1 time
• D) .44 times

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Definitions:

Discount Period

The time frame during which a bill or invoice can be paid at a reduced rate before full payment is required.

Marketable Securities

Investments that can be converted to cash on very short notice and provide at least a modest return.

Net Operating Working Capital

A measure of a company's liquidity that takes into account the difference between its operating current assets and its operating current liabilities.

Accounts Payable

Short-term liabilities of a company for goods and services received but not yet paid for.