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Use the Information Below to Answer the Following Questions

question 9

Multiple Choice

Use the information below to answer the following questions:
Saw Ltd’s inventory at 1 July 2011 was $16 300, and at 30 June 2009 it was $23 700. Sales for the year ended 30 June 2012 were $125 000 and the gross margin was 20%.
-What was the number of days' inventory on hand?


Definitions:

Signaling Effect

The phenomenon where actions by a company provide clues or signals to the market about its potential performance or financial health.

Dividend Policy

A company's stance on distributing earnings back to shareholders through dividends, including considerations on the timing and amount of those dividends.

Stock Price

The cost of purchasing a share of a company in the stock market, reflecting the company's current market value.

Shareholders

Individuals or entities that own shares in a corporation, giving them a claim on part of the company's assets and earnings.

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