Selected Year-End Data for the Brayer Company Are Presented Below

question 128

Multiple Choice

Selected year-end data for the Brayer Company are presented below:
The company has no prepaid expenses,and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to which of the following?

• A) 1.20 times.
• B) 1.67 times.
• C) 2.33 times.
• D) 2.40 times.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.