The Following Balance Sheet Information Is Provided for Gaynor Company

question 82

Multiple Choice

The following balance sheet information is provided for Gaynor Company: Assuming Year 2 cost of goods sold is $153,300, what is the company's inventory turnover?
$$\begin{array} { | l | r r | r r | } \hline \text { Assets } & & 2014 & 2013 \\\hline \text { Cash } & \$ & 4,000 & \$ & 2,000 \\\hline \text { Accounts receivable } & & 15,000 & & 12,000 \\\hline \text { Inventory } & \$ & 35,000 & \$ & 38,000 \\\hline\end{array}$$

• A)4.0 times
• B)4.4 times
• C)4.2 times
• D)None of these answers is correct.

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Definitions:

Big Picture

A general perspective or broad overview of a situation or concept.

Competitive Scope

The range or breadth of fields or markets in which an organization competes.

Low Costs

The strategy of minimizing expenses in various areas of operations to increase profit margins and competitiveness.

Differentiation

The process in which a business distinguishes its product or service from others in the market to attract a specific target market.