Financial Statements for March Company Appear Below -March Company's Inventory Turnover for Year 2 Was Closest to Company

question 197

Multiple Choice

Financial statements for March Company appear below:

$\begin{array}{|l|r|}\hline&\begin{array}{r}\text { March Company } \\\text { Income Statement }\\\text { For the Year Ended December 31, Year } \\2 \\\text { (dollars in thousands) } \\\end{array} \\\hline \text { Sales (All on Account) } & \$ 1610 \\\hline \text { Costs of Goods Sold } & \$ 1120 \\\hline \text { Gross Margin } & \$ 490 \\\hline \text { Operating Expenses } & \$ 190 \\\hline \text { Net Operating Income } & \$ 300 \\\hline \text { Interest Expense } & \$ 50 \\\hline \text { Net Income before Taxes } & \$ 250 \\\hline \text { Income Taxes (30\%) } & \$ 75 \\\hline \text { Net Income } & \$ 175 \\\hline\end{array}$
-March Company's inventory turnover for Year 2 was closest to which of the following?

• A) 7.2 times.
• B) 7.5 times.
• C) 10.4 times.
• D) 10.7 times.

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Definitions:

BCM (Body Control Module)

An electronic control unit that manages various functions in a vehicle, such as lighting, windows, locks, alarms, and other body-related functions.

Incandescent Bulb

A bulb that produces light by passing an electric current through a filament, which heats and glows.

Parking Lamps

Exterior lights on a vehicle designed to make it visible in the dark while parked, improving safety.

Electronic Flasher Unit

A device in the vehicle's turn signal system that controls the blinking pattern of the turn signal lights.