Cromwell Company Began the Year with a Balance in Inventory

question 19

Multiple Choice

Cromwell Company began the year with a balance in inventory of $110,000 and ended the year with a balance of $102,000.The net sales for the year were $983,000 with a gross profit on sales of $295,000.What was the inventory turnover ratio?

• A)2.78
• B)9.27
• C)6.49
• D)2.89

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Definitions:

V(X + Y)

The variance of the sum of two random variables, reflecting the spread or variability of their combined distribution.

Probability Distribution

A mathematical description of the likelihood of occurrence of different possible outcomes in an experiment.

Random Variable

A variable whose outcomes are determined by a random phenomenon or process.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes for an event.