If the Average Aggregate Inventory Value Is $100,000 and the Cost

question 20

Multiple Choice

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

• A)19.23
• B)4.5
• C)0.8654
• D)0.2222
• E)None of these

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Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions for interest and taxes.

Income Statement

A financial statement that shows a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, and losses.

Gain

The increase in equity resulting from the sale of a business asset for more than its carrying amount.

Assets

Assets that a business possesses or controls, anticipated to yield future economic advantages.