Grove Corporation Had Sales of $3,000,000,cost of Sales of $2,250,000,and

question 21

Multiple Choice

Grove Corporation had sales of $3,000,000,cost of sales of $2,250,000,and average inventory of $500,000.What was Grove's inventory turnover ratio for the period?

• A)1.6 times
• B)6 times
• C)4.5 times
• D)23 times

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Definitions:

Effective Rate

The interest rate on a loan or investment, adjusted for the effect of compounding.

Interest Rate

The rate at which a borrower is charged interest for the money borrowed from a lender.

Cash Rebate

A partial refund to someone who has paid too much money for tax, rent, or a utility, or as a promotional incentive from the purchase of goods or services.

Effective Rate

The actual interest rate earned or paid on an investment, loan, or savings account, taking into account the effect of compounding.