A Company Has $72,500 of Inventory at the Beginning of the Year

question 69

Multiple Choice

A company has $72,500 of inventory at the beginning of the year and $65,500 at the end of the year.Sales revenue is $986,400,cost of goods sold is $572,700,and net income is $124,200 for the year.The inventory turnover ratio is closest to:

• A) 1.8.
• B) 8.3.
• C) 6.0.
• D) 14.3.

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Definitions:

Reliability

The probability that a system or component will perform its required function under stated conditions for a specified period of time.

Capacity Utilization

The percentage of an entity's total production capacity that is actually being used over a specific period.

Motor Carrier

A company or individual providing transportation services for goods by motor vehicles, such as trucks.

Trucking Industry

The sector of transportation that deals with the movement of goods over land by trucks, playing a critical role in supply chains and logistics.