The Following Data Were Taken from Castle, Inc

question 84

Multiple Choice

The following data were taken from Castle, Inc.Cost of goods sold $894,000
Inventory, end of year
78,000
Inventory, beginning of the year
92,000
What is (1) the inventory turnover ratio and (2) the number of days' sales in inventory for Castle Inc.

• A)(1) 11.46 times (2) 31.85 days
• B)(1) 10.52 times (2) 34.70 days
• C)(1) 9.72 times (2) 37.56 days
• D)(1) 10.53 times (2) 34.56 days

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Definitions:

Additional Worker

An employee hired to increase the workforce, contributing to higher production or service capacity.

Firm

An organization that uses resources to produce goods or services for profit in an economic system.

Goods

Items or products that are produced to satisfy wants or needs of consumers. Goods can be tangible, like food and cars, or intangible, like services.

Services

Intangible and non-physical goods provided by individuals or companies, such as healthcare, education, and financial consulting.