Following Are the Financial Statements for Starman Corporation for the Year

question 111

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31,20xx.Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation
Balance Sheet
December $31,20 x x$
$\begin{array}{lrr}\text { Assets }\\\text { Cash } & \$ 20,000 \\\text { Marketable securities } & 30,000 \\\text { Accounts receivable } & 50,000 \\\text { Inventory } & 100,000 \\\text { Long-term receivables } & 35,000 \\\text { Property, plant, and equipment } & 65,000\\\text { Total assets }&\$300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 100,000 \\\text { Long-term liabilities } & 60,000 \\\text { Stockholders' equity } & 140,000\\\text { Total liabilities and stockholders' equity }&\$300,000\end{array}$ $\begin{array}{c}\text {Starman Corporation}\\\text { Income Statement }\\\text {For the Year Ended December \( 31,20 \times\times \) }\\\\\begin{array}{lr}\text { Net sales } & \$ 400,000 \\\text { Cost of goods sold } & 240,000 \\ \text { Gross margin } & \$ 160,000 \\\text { Operating expenses } & 40,000 \\\text { Income before income taxes } & \$ 120,000 \\\text { Income taxes expense } & 30,000 \\\text { Net income } & \$ 90,000\end{array}\end{array}$
What is the inventory turnover for this corporation? Round your answer to one decimal place.

• A) 1.2 times
• B) 1.6 times
• C) 2.4 times
• D) 4.0 times

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Definitions:

Cylinders

Three-dimensional geometric shapes with straight parallel sides and a circular or oval cross-section.

Drill Bits

Tools made of hard material, often high-speed steel or carbide, used to create cylindrical holes.

Chamfering

The process of creating a beveled edge at the intersection of two surfaces to remove sharp edges for safety, aesthetics, or part assembly.

Groove

A long, narrow cut or depression in a hard material, often used to fit another component or allow the passage of fluids.