Consider the Following Inventory Data for Two Companies: Which of These

question 114

Multiple Choice

Consider the following inventory data for two companies: Which of these companies had the higher inventory turnover ratio?
$$\begin{array} { | l | r | r | } \hline & \text { Nichols Inc., } & \text { Winters Inc., } \\\hline \text { Beginning inventory } & \$ 120,000 & \$ 150,000 \\\hline \text { Ending inventory } & 80,000 & 100,000 \\\hline \text { Purchases } & 240,000 & 310,000 \\\hline\end{array}$$

• A)Nichols.
• B)Winters.
• C)The ratios are the same for both companies.

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Definitions:

Financial Remuneration

Payment for work or services, including salaries, wages, bonuses, or other forms of compensation.

Exchange

The trade of things of value between buyer and seller so that each is better off after the trade.

MBA

Master of Business Administration, a graduate degree that focuses on business administration and investment management.

Marketing Exchange

The process by which two or more parties trade goods, services, or ideas in a way that benefits both sides, often involving monetary transactions.