Lisa Inc.'s Balance Sheet Appears Below

question 56

Multiple Choice

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.



-Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

• A) 3.7 times.
• B) 4.0 times.
• C) 4.4 times.
• D) 5.0 times.

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Definitions:

Cold Drinks

Beverages that are served chilled, commonly refreshing and enjoyed in hot conditions.

Temperature

A physical quantity that expresses the subjective perceptions of hot and cold, measured by a thermometer in units like Celsius, Fahrenheit, or Kelvin.

Temperature

A measure of the average kinetic energy of the particles in an object or system, indicating how hot or cold the object is.

Increased

Increased refers to a situation or condition becoming larger, greater, or higher in number or amount.