The Following Information Was Available for Camara Company at December

question 214

Multiple Choice

The following information was available for Camara Company at December 31, 2014: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $560,000; and sales $800,000. Camara's inventory turnover in 2014 was

• A) 8.0 times.
• B) 6.7 times.
• C) 5.6 times.
• D) 4.7 times.

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Definitions:

Sales

The exchange of a commodity or service for money; the action of selling something.

Least Squares Regression

A statistical method for estimating the relationship between variables by minimizing the squares of the differences between observed and predicted values.

Relationship

A connection, association, or involvement between two or more variables or entities.

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly the mean.