The Following Balance Sheet Information Is Provided for Gaynor Company

question 154

Multiple Choice

The following balance sheet information is provided for Gaynor Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 4,250 & \$ 3,500 \\\text { Accounts receivable } & 17,000 & 15,000 \\\text { Inventory } & \$ 44,500 & \$ 52,000\end{array}$ Assuming Year 2 cost of goods sold is $130,000, what is the company's inventory turnover?

• A) 2.50 times
• B) 2.69 times
• C) 2.92 times
• D) None of the these answers are correct.

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Definitions:

Formal Plan

A detailed, written document that describes the strategies, activities, resources, and timelines for achieving specific goals.