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Stephan, Inc. Stephan, Inc. Has an Inventory Turnover Rate of 8 Times

Question 41

Multiple Choice

Stephan, Inc.
Stephan, Inc. has an inventory turnover rate of 8 times.
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Refer to the information provided for Stephan, Inc. If its cost of goods sold is $150,000, then the company:


A) will report sales of $1,200,000.
B) will report gross margin of $1,200,000.
C) will have average inventory of $18,750.
D) sells its inventory 1,200 times per year.

Correct Answer:

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