Below is selected data for Gertup Corporation as of 12/31/05:
$$\begin{array} { l r }
\text { Total assets } & \$ 5,500 \
\text { Current assets } & 2,750 \
\text { Long-term debt } & 450 \
\text { Current ratio } & 2.5 \
\text { Inventory } & 1,500 \
\text { For year ended 12/31/05 } & \
\text { Sales } & \$ 18,500 \
\text { Cost of goods sold } & 14,800
\end{array}$$
-Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)?
A)$1,541
B)$1,233
C)$267
D)$42

Question

Below is selected data for Gertup Corporation as of 12/31/05:
 $$\begin{array} { l r } 
\text { Total assets } & \$ 5,500 \
\text { Current assets } & 2,750 \
\text { Long-term debt } & 450 \
\text { Current ratio } & 2.5 \
\text { Inventory } & 1,500 \
\text { For year ended 12/31/05 } & \
\text { Sales } & \$ 18,500 \
\text { Cost of goods sold } & 14,800
\end{array}$$
-Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)?
A)$1,541
B)$1,233
C)$267
D)$42

Quizplus · Accepted Answer

The Answer of Below is selected data for Gertup Corporation as of 12/31/05:
 $$\begin{array} { l r } 
\text { Total assets } & \$ 5,500 \
\text { Current assets } & 2,750 \
\text { Long-term debt } & 450 \
\text { Current ratio } & 2.5 \
\text { Inventory } & 1,500 \
\text { For year ended 12/31/05 } & \
\text { Sales } & \$ 18,500 \
\text { Cost of goods sold } & 14,800
\end{array}$$
-Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)?
A)$1,541
B)$1,233
C)$267
D)$42

Below Is Selected Data for Gertup Corporation as of 12/31/05