Dividing Ending Inventory by Cost of Goods Sold and Multiplying

question 167

Multiple Choice

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the:

• A)Inventory turnover ratio.
• B)Profit margin.
• C)Days' sales in inventory.
• D)Current ratio.
• E)Total asset turnover.

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Definitions:

Anticipated Synergies

The expected benefits, efficiencies, or savings generated through the combination or collaboration of different entities, projects, or processes.

Timeframe

A specified period during which certain events or activities are to take place or be completed.

Success of the Merger

The positive outcome of combining two or more companies, typically measured by financial performance, market share, and synergies achieved.

Loblaws

A Canadian supermarket chain, offering grocery products, pharmaceutics, banking, and clothing, among other things.