Answered: Consider a firm with an annual net…

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $20 million. If the balance sheet amounts show $2 million of inventory and

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Question

Consider a firm with an annual net
income of $20 million, revenue of $60
million and cost of goods sold of $20
million. If the balance sheet amounts
show $2 million of inventory and
$500,000 of property, plant &
equipment, what is the inventory
turnover?
12.50
10.00
40.00
8.00

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