In 20B,Landings Inc

question 128

Multiple Choice

In 20B,Landings Inc.provided the following information in their financial statements: Cost of goods sold under FIFO costing is $22.2 billion and their inventory value under FIFO is $1.3 billion at the end of 20B and $1.2 billion at the end of 20A.What would their inventory turnover ratio be under the FIFO cost flow method?

• A)8.9
• B)17.1
• C)17.8
• D)18.5

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Definitions:

Imputed Interest Rules

Regulations set by the IRS to assign a reasonable interest rate to financial transactions that do not state their own interest or whose interest is deemed insufficient.

Sale of Property

The act of transferring ownership of real estate or personal property from one entity to another, often resulting in capital gains or losses for tax purposes.

Personal Residence

A dwelling in which an individual lives for a significant part of the year, considered as their main place of residence.

Working Condition Fringes

These are non-taxable benefits provided by an employer for the benefit of the employee, related directly to the nature of the job.