Please Refer to Table 4-2 for the Following Questions

question 28

Multiple Choice

Please refer to Table 4-2 for the following questions.
Table 4-2
Drummond Company
Balance Sheet

-Based on the information in Table 4-2,the inventory turnover ratio is

• A) 1.29 times.
• B) 2.37 times.
• C) 4.43 times.
• D) 2.99 times.

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Definitions:

Financing Activities

These refer to transactions and business events involving the flow of cash between a company and its investors, creditors, and owners, such as issuing shares, borrowing loans, and paying dividends.

Accounts Receivable Balance

The total amount of money due to a company for goods or services delivered or used but not yet paid for by customers.

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling goods and services.

Sale of Machinery

The transaction involving the disposal of machinery assets, either due to replacement, upgrading, or discontinuation of use, which can impact a company's financial statements.