Using the Information Provided,what Is the Inventory Turnover for the Firm

question 71

Multiple Choice

Using the information provided,what is the inventory turnover for the firm? Perfect Purchase Electronics
Selected Income Statement Items,2014
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2014 12/31/2013 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000

• A)23.53 times
• B)53.33 times
• C)48.00 times
• D)60.00 times

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Definitions:

Mature

Used to describe a market, industry, or product that has reached a state of equilibrium with slow growth; or an individual with fully developed physical and mental characteristics.

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A leading global financial exchange where stocks and other securities are bought and sold.

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing entities.

Borrower's Ability

The capacity of an individual or organization to repay borrowed funds.