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:

Net Present Value

A valuation method that calculates the current worth of a project or investment based on its expected future cash flows.

Initial Investments

The initial capital or resources put into a project, business, or investment, critical for startup and initial operations.

Net Operating Income

a gauge of a company's financial performance, calculated as gross income minus operating expenses, excluding taxes and interest.

Present Value

The present worth of a sum of money or cash flows expected in the future, based on a certain rate of return.