Sparky's
Sparky's Sells Auto Parts -Using Sparky's Financial Information What Is the Company's Inventory Turnover

question 5

Multiple Choice

Sparky's
Sparky's sells auto parts.Provided below is selected financial information from the company's 2012 annual report:
$\begin{array} { l r r } \text { Fiscalyear end } & 2012 & 2011 \\\text { (amounts in thousands of dollars) } & & \\\text { Net sales } & \$ 125,410 & \$ 106,380 \\\text { Cast of Goods Sold } & - 104,090 & - 8 9 , 3 5 5 \\\text { Grass Prafit } & \$ 21,320 & \$ 17,021 \\\text { Irventory } & \$ 31,353 & \$ 30,850\end{array}$
-Using Sparky's financial information what is the company's inventory turnover ratio for 2012?

• A) 0.69
• B) 1.00
• C) 3.35
• D) 4.03

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Definitions:

Reset

The act of bringing a device, component, or system back to its original state or setting, often to correct a malfunction or restart a process.

Protons

Subatomic particles found in the nucleus of an atom, characterized by a positive electric charge and a significant role in determining the chemical properties of elements.

Atom

The smallest unit of a chemical element, consisting of a nucleus surrounded by electrons.

Electricity

The flow of electrons from a source of higher electrical potential to a source of lower electrical potential through a conductor.