rinciples of Managerial Accounting Web Summer 2018 est Exam

rinciples of Managerial Accounting Web Summer 2018 est: Exam 2 Time Remaining: 0100 39 This Question: 1 pt 4-4 of 32 (16 complete) ? | > This Test:32 pts e The Amo s Corporation reported the following income statement and balance sheet amounts and addtonal information or the end of the a End of current year End of prior year Net sales revenue (all credit) Cost of goods sold Gross profit Selling/general expenses Interest expense Net Income $1,420,000 5925,000 $495,000 S280,000 $42,000 $173,000 $113,000 $512.000 $625,000 $82.000 $440,000 $522,000 Current assets Long -term assets Total assets O A. 19.17 times OB, 1.54 times ° C. 0.05 times OD. 29.43 times e cost for e

Solution

Inventory Turnover ratio = Cost of Sales / Average Inventory

Given Cost of Goods sold = $925000

Average inventory for current year =$48250

Inventory Turnover = $925000/$48250 = 19.17 times

Option A is correct