The Following Balance Sheet Information Is Provided for Gaynor Company

question 137

Multiple Choice

The following balance sheet information is provided for Gaynor Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } &{\text { Year 1 }} \\\text { Cash } & \$ 4,000 & \$ 2,000 \\\text { Accounts receivable } & 15,000 & 12,000 \\\text { Inventory } & \$ 35,000 & \$ 38,000\end{array}$ Assuming Year 2 cost of goods sold is $153,300, what is the company's inventory turnover?

• A) 4.0 times
• B) 4.4 times
• C) 4.2 times
• D) None of these answers are correct.

---

Definitions:

Customized Products

Goods that are specially designed and produced to meet the individual preferences and requirements of customers.

Consumer Base

The group of customers or clients who regularly purchase goods or services from a particular business or market segment.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for speed, ease of transport, and flexible mobility.

Poverty Trap

A situation where poverty persists due to systemic barriers, making it difficult for individuals to escape.