Zhang Company Reported Cost of Goods Sold of $835,000 and Average

question 84

Multiple Choice

Zhang Company reported Cost of goods sold of $835,000 and average Inventory of $41,750. The Inventory turnover ratio is:

• A) 0.5 times.
• B) 20 times.
• C) 418 times.
• D) 56 times.
• E) 19 times.

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Definitions:

Stockholders' Equity

Represents the residual value of assets minus liabilities, indicating the ownership interest of shareholders in a company.

Accounts Receivable

Company-expected payments for goods or services given to customers, pending settlement.

Inventory

Inventory encompasses the goods and materials a business holds for the purpose of resale or production.