The Following Information Was Available for Hoover Company at December

question 12

Multiple Choice

The following information was available for Hoover Company at December 31, 2011: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000.Hoover's inventory turnover ratio in 2011 was

• A)10.0 times.
• B)7.3 times.
• C)9.4 times.
• D)6.0 times.

---

Definitions:

Term to Maturity

The remaining time until a financial instrument's principal amount is due to be repaid.

Net Basis

A method of reporting income and expenses where they are netted against each other, showing only the net amount instead of reporting them separately.

Cash Receipts

Money received by a business, typically documented during the accounting period in which it is received.

Turnover Quick

A measure reflecting the speed at which a company can convert its inventory or assets into sales or revenue, indicating operational efficiency.