Refer to the Following Selected Financial Information from McCormik, LLC

question 97

Multiple Choice

Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & {\text { Year 1 }} \\\hline \text { Cash } & \$ 37,500 & 36,850 \\\hline \text { Short-term investments } & 90,000 & 90,000 \\\hline \text { Accounts receivable, net } & 85,500 & 86,250 \\\hline \text { Merchandise inventory } & 121,000 & 117,000 \\\hline \text { Prepaid expenses } & 12,100 & 13,500 \\\hline \text { Plant assets } & 388,000 & 392,000 \\\hline \text { Accounts payable } & 113,400 & 111.750 \\\hline \text { Net sales } & 711,000 & 706,000 \\\hline \text { Cost of goods sold } & 390,000 & 385,500 \\\hline\end{array}$

• A)3.86.
• B)5.78.
• C)3.28.
• D)4.33.
• E)4.72.

---

Definitions:

Pavlov's Experiments

A series of studies conducted by Ivan Pavlov that demonstrated classical conditioning, where dogs learned to associate a neutral stimulus (bell) with an unconditioned stimulus (food), leading to a conditioned response (salivating).

Salivary Conditioning

A form of classical conditioning where an automatic and natural response, like salivation, is trained to respond to a previously neutral stimulus.

Unconditioned Response (UR)

An instinctive, automatic response to a stimulus that takes place without any earlier learned behavior or conditioning.

Ring Tone

A noise produced by a phone signaling an incoming call or text message.