Kraers Inc

question 34

Multiple Choice

Kraers Inc.keeps an average of 200 finished widgets in inventory each month,and it sold 2000 widgets this year.Therefore,the inventory turnover of the company is: 

• A) ​10. 
• B) ​20. 
• C) ​100. 
• D) ​200.

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Definitions:

Profit Margin Factor

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold, representing the efficiency of a company in generating profit from sales.

DuPont Formula

An expanded expression of return on investment (ROI) determined by multiplying the profit margin by the investment turnover.

Return on Investment

Return on Investment, or ROI, measures the gain or loss generated on an investment relative to the amount of money invested.

Invested Assets

Financial assets purchased with the expectation that they will generate income or profit, or appreciate in value.