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:

GEO

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LEO

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MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit (LEO) and below geostationary orbit, often used for satellites, including for communications and navigation purposes.

Google's Project Loon

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