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
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How much is the inventory turnover for 2014?

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

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Face Value

This is the nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its value at issue.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset or investment returns relative to its mean.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain timeframe.