In 2015, Hidey Company Had Average Inventory of $86,000

question 50

Multiple Choice

In 2015, Hidey Company had average inventory of $86,000. The 2015 income statement showed net sales of $2,200,000 and gross profit of $420,000. In 2014, it was taking the company approximately 30 days to sell its inventory.
-The company's inventory turnover for 2015 was approximately

• A) 20.7 times.
• B) 2.7 times.
• C) 25.6 times.
• D) 4.9 times.

Understand the concept of capital rationing and its two types: soft and hard rationing.

Grasp the methods to test and validate sales projections and cost estimates.

Recognize the importance of strategic options and contingency planning in business scenarios.

Understand the concept of operating leverage and its effect on business risk.

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Definitions:

Recall New Information

The ability to access and retrieve facts, data, or memories that have been recently acquired.

Cognitive Ability

Cognitive ability refers to the capacity of the brain to think, reason, solve problems, and process information.

Adulthood

The period in human development after adolescence, characterized by fully developed physical growth, maturity, and acceptance of adult responsibilities.

Recognize New Information

The cognitive process of identifying and understanding previously unseen data or facts.