The Universal Network Has Sales of $496,500,cost of Goods Sold

question 116

Multiple Choice

The Universal Network has sales of $496,500,cost of goods sold of $264,900,and inventory of $87,100.What is the inventory turnover rate?

• A)1.33
• B)3.04
• C)5.70
• D)7.14
• E)8.47

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Definitions:

Setoff

is a legal mechanism allowing a debtor to reduce the amount they owe to a creditor by any sum the creditor owes to them.

Obligor

An individual or entity that is legally or contractually bound to provide something to another party, the obligee.

Assignor

The party who transfers rights or interests in a contract to another party, known as the assignee.

Assignment

The transfer of rights or property from one party to another, typically in a contract setting.