22) The Bedford Corporation reported the following income statement and balance

Question

22) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year End of prior ear End of current vear Net sales revenue (all credit) Cost of goods sold Gross profit Selling/general expenses Interest expense Net Income $1,220,000 $725,000 $495,000 $280,000 $42,000 $173,000 Current assets Long-term assets Total assets Current liabilities Long-term liabilities Comm Total liabilities and stockholders' equit $113,000 $512,000 $625,000 $57,000 $275,000 $293,000 $625,000 $82,000 $440,000 $522,000 $52,000 $245,000 $225,000 $522,000 on stockholders' equity Inventory and prepaid expenses account for $30,000 of the current year's current assets Average inventory for the current year is $36,250 Average net accounts receivable for the current year is $45,000 There are 35,000 shares of common stock outstanding Total dividends paid during the current year were $17,000 The market price per share of common stock is $20 What is the inventory turnover for the current year? A) 13.66 times B) 27.11 times C) 20 times D) 16 times

Explanation / Answer

Inventory turnover = cost of goods sold / Average inventory

Inventory turnover = $725,000 / $36,250

Inventory turnover = 20 Times

Answer is C) 20 Times

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.