The Following Selected Information Is from Acme's Annual Report for the Years

question 265

Multiple Choice

The following selected information is from Acme's annual report for the years ended December 31:

-Refer to the Acme annual report above.Calculate the inventory turnover ratio for 2011.

• A)3.75 times
• B)6.0 times
• C)7.3 times
• D)The answer cannot be determined from the information given.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders, typically in cash, representing a portion of the earnings allocated to each share of stock.

Stock Dividend

A distribution of additional shares of a company to its shareholders, instead of cash, usually based on a fixed ratio to the existing shares held.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds.

Total Assets Ratio

Total assets ratio refers to financial metrics that measure the efficiency and profitability of a company relative to its total assets.