question 65
Multiple Choice
Scenario: Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $ ) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity 2007$1,554.09,660.013,440.0$24,654.017,346.0$42,000.0$7,980.05,880.04,620.0$18,480.010,920.0$29,400.03,360.09,240.0$12,600.0$42,000.0 Income Statement (Millions of $ ) Net sales Operating costs except depr’n Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends Interest rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2007$58,800.00$54,978.0$1,029.0$2,793.01,050.0$1,743.0$610.1$1,133.0175.00$509.836.25%35%$77.69
-Refer to Scenario: Pettijohn Inc.What is the firm's inventory turnover ratio?
Definitions:
Sale of Goods
A transaction between a buyer and a seller in which the seller transfers ownership of goods to the buyer for a price.
Contracts for Services
Agreements between parties where one agrees to provide a service to the other in exchange for compensation.
Sale of Land
The legal process involving the transfer of property rights in land from one party to another, typically through a deed.
Uniform Commercial Code
A comprehensive set of laws governing commercial transactions in the United States, facilitating the uniformity and predictability of commercial activities across different states.