Sparky's Sparky's Sells Auto Parts

question 56

Multiple Choice

Sparky's Sparky's sells auto parts.Provided below is selected financial information from the company's 2012 annual report:
Sparky's forecasts that sales will grow by 25% in 2013 and that its cost of goods sold to sales ratio will be the same in 2013 as it was in 2012.If these assumptions prove correct and Sparky's inventory turnover ratio for 2013 is 4.5 what will be the level of inventory at the end of 2013?

• A) $31,353
• B) $38,320
• C) $40,000
• D) $42,314

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Definitions:

Killed

The action of causing the death of a living entity, whether intentionally or unintentionally.

Duty

An obligation or responsibility to act in a certain way, often imposed by law, social norms, or professional standards.

Double Indemnity

A clause in a life insurance or accident policy that entitles the beneficiary to receive twice the face value of the policy in the event of accidental death.

Construction Accident

An unexpected event occurring on a construction site that leads to injury or damage.