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Refer to the Tables Above

question 119

Multiple Choice

$\begin{array} {c } \text {MARNI COMPANY }\\ \text { Balance Sheet}\\ \text { As of December 31}\\\begin{array}{lrr}\text { ASSETS }\\\text { Cash } & \$ 50,000 \\\text { Accounts receivable } & 100,000 \\\text { Inventory } & 200,000 \\\text { Net plant and equipment } & 650,000\\\text { Total assets }&\$1,000,000\\\\\text { LIABITTES AND STOCKHOLDER.S' EQUTTY }\\\text { Accounts payable } & \$ 100,000 \\\text { Accrued expenses } & 90,000 \\\text { Long-term debt } & 250,000 \\\text { Common stock } & 100,000 \\\text { Paid-in capital } & 50,000 \\\text { Retained earnings } & 410,000\\\text { Total liabilities and stockholders' equity }&\$1,000,000\end{array}\end{array}$

$\begin{array} {c } \text {MARNI COMPANY }\\ \text {Income Statement }\\ \text {For the year ended December 31 }\\\begin{array} { l } \text {Sales (all on credit) }&\$2,000,000\\ \text {Cost of goods sold }&1,750,000\\ \text { Gross profit}&\$250,000\\ \text {Sales and administrative expenses }&30,000\\ \text { Fixed lease expenses}&10,000\\ \text {Depreciation }&60,000\\ \text { Operating profit}&\$150,000\\ \text {Interest expense }&25,000\\ \text { Profit before taxes}&\$125,000\\ \text { Taxes (40 \%) }&50,000\\ \text {Net income }&\$75,000\\\end{array}\end{array}$

Refer to the tables above. The firm's inventory turnover ratio is ________.

Definitions:

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Items or elements in a visual environment that are not immediately obvious, requiring careful observation or search to discover.

Identify Verbally

The ability to recognize and name objects, concepts, or sensations through spoken language.

Right Hand

Typically refers to the dominant hand of the majority of people, often associated with skill and precision in performing tasks.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.