Your Firm Has Sales of $628,000 and Cost of Goods

question 64

Multiple Choice

Your firm has sales of $628,000 and cost of goods sold of $402,000. At the beginning of the year,your inventory was $31,000. At the end of the year,the inventory balance was $33,000. What is the inventory turnover rate?

• A) 11.23 times
• B) 12.56 times
• C) 18.60 times
• D) 19.63 times
• E) 29.06 times

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Definitions:

Unrecognised Losses

Losses that have occurred but have not been officially recorded in the financial statements.

Controlling Interest

Controlling interest is a situation in which an investor, entity, or group of entities owns enough shares to dictate the company's policies and direction through voting power.

Ownership Structure

The way in which a company is owned and organized, detailing the distribution of shareholder and stakeholder interests.

Subsidiary

An entity that is controlled by another entity.