Using the Information Provided,what Is the Inventory Turnover for the Firm

question 37

Multiple Choice

Using the information provided,what is the inventory turnover for the firm? Allied Industries, Inc.
Selected Income Statement Items, 2017
$\begin{array}{ll}\text { Cash Sales } & \$ 1,500,000 \\\text { Credit Sales } & \$ 7,500,000 \\\text { Total Sales } & \$ 9,000,000 \\\text { COGS } & \$ 6,000,000\end{array}$
Allied Industries, Inc.
Selected Balance Sheet Accounts
$\begin{array}{llll}&12/31/2017 &12/31/2016&\text { Change }\\\text { Accounts Receivable } & \$ 270,000 & \$ 240,000 & \$ 30,000 \\\text { Inventory } & \$ 125,000 & \$ 100,000 & \$ 25,000 \\\text { Accounts Payable } & \$ 110,000 & \$ 90,000 & \$ 20,000\end{array}$

• A)23.53 times
• B)53.33 times
• C)48.00 times
• D)60.00 times

---

Definitions:

Rolling Mill

A machine or factory setup for rolling metal into sheets, rods, or various shapes through compressive forces applied by rotating rolls.

Equal Leg Angles

Structural shapes whose sides form a 90-degree angle and have legs of equal length, commonly used in construction.

Unequal Leg Angles

Structural steel shapes where the two sides forming the angle are of different lengths.

Unified National Fine

A standard for threading that specifies a fine thread pitch, commonly used in bolts, screws, and nuts in North American engineering applications.