Please Refer to Table 4-4 for the Following Questions

question 132

Multiple Choice

Please refer to Table 4-4 for the following questions.
Table 4-4
Wes Donnell, Inc.
Balance Sheet

-In addition to the information contained in Table 4-4,you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010.What is Wes Donnell's inventory turnover for 2010?

• A) 0.13
• B) 11.1
• C) 9.3
• D) 7.78

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Definitions:

Capital Gain

The profit from the sale of assets or investments when the sale price exceeds the purchase price.

Geometric Average Return

The average rate of return of an investment calculated by multiplying n variables and then taking the n-th root.

Dividends

Profits distributed by a corporation to its members, typically in the form of payments.

Expected Rate Of Return

The anticipated amount of profit or loss an investment generates, based on historical or estimated performances.