The Balance Sheet and Income Statement Shown Below Are for Pettijohn

question 80

Multiple Choice

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

-What is the firm's inventory turnover ratio?

• A) 4.38
• B) 4.59
• C) 4.82
• D) 5.06
• E) 5.32

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Definitions:

S Corporations

A type of corporation in the United States that allows profits, and some losses, to be passed directly to owners' personal income without being subject to corporate tax rates.

Limited Liability Companies

Business entities that offer their owners limited personal liability for the debts and actions of the company while enabling profit distributions.