Peartree Company Provides the Following Data Additional Information:
• Net Sales (All on Account): $240,000
•

question 70

Multiple Choice

Peartree Company provides the following data:
$$\begin{array} { | l | r | r | } \hline \text { BALANCE SHEET } & \text { Dec 31,2014 } & \text { Dec 31,2013 } \\\hline \text { Cash } & \$ 21,000 & \$ 18,000 \\\hline \text { Accounts receivable, net } & 31,000 & 35,000 \\\hline \text { Inventory } & 53,000 & 25,000 \\\hline \text { PP\&E, net } & 120,000 & 90,000 \\\hline \text { Total assets } & \$ 225,000 & \$ 168,000 \\\hline\end{array}$$
Additional information:
• Net sales (all on account) : $240,000
• Cost of goods sold: $110,000
-
How much is the inventory turnover for 2014?

• A) 1.41
• B) 2.82
• C) 2.00
• D) 1.65

---

Definitions:

Fixed Proportions

A production scenario where inputs must be used in constant ratios, lacking flexibility in substitution or adjustment.

Input

Factors including workforce, materials, and financial assets employed in the process of producing goods and services.

Resource Demand

The desire and ability of businesses or individuals to acquire economic resources or inputs for the production of goods and services.

Product Requirement

Specifications or criteria that a product must meet related to its design, functionality, and performance.