A company's cost of goods sold was $15,500 and its average merchandise inventory was $4,500. Its inventory turnover equals 3.4.
Answer the following statement true (T) or false (F)
True
Inventory Turnover = Cost of Goods Sold/Average Merchandise Inventory
Inventory Turnover = $15,500/$4,500 = 3.4
You might also like to view...
Multichannel distribution
A. may involve using both direct and indirect channels simultaneously. B. may create channel conflict. C. may offer producers a way to reach customers they would not be able to reach with a single channel. D. is becoming more common. E. All these answers are correct.
In the lawsuit between P&G and BT, who won? Explain how both counterparties might have lost
What will be an ideal response?
Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?
A. Mary's counteroffer terminates Carl's offer of $1,500. B. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500. C. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection? D. Mary's offer is an option contract and she cannot revoke the offer.
Which is not a problem of forward contracts?
A) A lack of liquidity B) A lack of flexibility C) The difficulty of finding a counterparty D) Default risk