Excerpts from Sydner Corporation's Most Recent Balance Sheet Appear Below

question 197

Multiple Choice

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.The inventory turnover for Year 2 is closest to:

• A) 3.75
• B) 1.20
• C) 4.09
• D) 0.83

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that excludes interest and income tax expenses.

EBIT

A profitability metric that calculates a company's profits excluding interest and income tax expenses.

Degree of Financial Leverage

A ratio indicating the degree to which a company uses borrowed funds to finance its operations, affecting potential returns and risk.

EPS

Earnings per share, a key indicator that calculates the portion of a company's profit allocated to each outstanding share of common stock.