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:

Socially Optimal

A state of resource allocation that is most beneficial for society as a whole.

Equilibrium Outcome

The state in a market where supply equals demand, and there is no external pressure to change the price or quantity of goods and services.

Positive Externalities

Benefits that are enjoyed by a third-party or society at large as a result of an economic activity, without them directly paying for it.

Social Benefits

The advantages or positive effects that an action or policy has on society as a whole, including things like improved health, education, and welfare.