the company's inventory turnover ratio
Not what you're looking for?
Selected year-end data for the ABC Company are presented below:
Current liabilities $600,000
Acid-test ratio 2.5 to 1
Current ratio 3.0 to 1
Cost of goods sold $500,000
The company has no prepaid expenses and inventories remained unchanged during the year. Based on these data, the company's inventory turnover ratio for the year was closest to:
A) 1.20 times.
B) 2.40 times.
C) 1.67 times.
D) 2.33 times.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to find the company's inventory turnover ratio.
Solution Preview
Answer: C
Current ratio = Current Assets/Current Liabilities
3.0 = Current ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Motivation
This tests some key elements of major motivation theories.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.