Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.

-Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

Question

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.

-Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. Without specific numbers, we assume the closest option based on typical inventory turnover rates for similar companies.

Lisa Inc.'s Balance Sheet Appears Below