Selected Data for Sorenta, Inc Based on This Data, Which Statement Below Is True?
A)

question 124

Multiple Choice

Selected data for Sorenta, Inc.and New World Corp., two companies in the same industry, are presented below: $$\begin{array} {l r r } &\text { Sorenta, Inc. } & \text { New World Corp. } \\\hline \text {Sales }& \$ 50,000 & \$ 80,000 \\\text {Cost of goods sold }&30,000 & 50,000 \\\text { Average inventory balance}&5,000 & 5,000\end{array}$$ Based on this data, which statement below is true?

• A) New World Corp sells its inventory faster than Sorenta, Inc.
• B) Sorenta, Inc.has a lower gross profit ratio than New World Corp.
• C) Sorenta, Inc.has lower storage costs and a lower investment in inventory than New World Corp.
• D) New World Corp has a higher net income than Sorenta, Inc.

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