Suppose Demand Is 45 Units a Month,average Inventory Is 60

question 35

Multiple Choice

Suppose demand is 45 units a month,average inventory is 60 units,and unit cost is $20.What is the annual inventory turnover?

• A)10
• B)9
• C)0.75
• D)15

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Definitions:

Gross Sales Revenue

the total amount of sales generated by a business before any deductions are made.

Sales Returns

Sales Returns represent the goods returned by customers to the seller, which leads to a reversal of sales revenue.

Quick Ratio

Quick Ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Assets

Assets that will be used or turned into cash within one year.