Refer to the Following Selected Financial Information from McCormik, LLC

question 106

Multiple Choice

Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2. $$\begin{array} { | l | r | r | } \hline & \text { Year 2 } & { \text { Year 1 } } \\\hline \text { Cash } & \$ 37,500 & 36,850 \\\hline \text { Short-term investments } & 90,000 & 90,000 \\\hline \text { Accounts receivable, net } & 85,500 & 86,250 \\\hline \text { Merchandise inventory } & 121,000 & 117,000 \\\hline \text { Prepaid expenses } & 12,100 & 13,500 \\\hline \text { Plant assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,400 & 111.750 \\\hline \text { Net sales } & 711,000 & 706,00 \\\hline \text { Cost of goods sold } & 390,000 & 385,500 \\\hline\end{array}$$

• A) 4.72.
• B) 4.33.
• C) 3.28.
• D) 5.78.
• E) 3.86.

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Definitions:

Semicircular Canals

Sense organs in the inner ear that contribute to equilibrium by responding to rotation of the head.

Equilibrium Difficulties

Challenges in maintaining physical balance, often related to issues in the inner ear or brain.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, responsible for hearing and balance.

Five Senses

The traditional set of senses used for perception: sight, hearing, taste, smell, and touch.