The Following Information Is Available for Lendo Company

question 80

Multiple Choice

The following information is available for Lendo Company:

Lendo's inventory turnover for 2012 is computed by

• A) $2,000,000 / $575,000
• B) $2,350,000 / $600,000
• C) $2,800,000 / $575,000
• D) $3,000,000 / $575,000

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Definitions:

Selling Expenses

Costs incurred directly in the selling of products or services, including advertising, sales commissions, and retail store expenses.

General and Administrative Expenses

Costs related to the overall operations of a company that are not directly tied to a specific functional area.

Gross Profit

The revenue a corporation retains after removing the costs related to the creation and sale of its products or the provision of its services.

Sales Discounts

Reductions in the amount due from a customer, offered as an incentive for early payment according to the sales terms.