5.80 10. Selected information from the accounting records of Thorne Company is a
ID: 2472910 • Letter: 5
Question
5.80
10. Selected information from the accounting records of Thorne Company is as follows:
Net sales for 2008 .................................... $900,000
Cost of goods sold for 2008 ...........................
600,000
Inventory at December 31, 2007 ........................
180,000
Inventory at December 31, 2008 ........................
156,000
Thorne's inventory turnover for 2008 is
5.36 times.
3.85 times.
3.67 times.
3.57 times.
5.80
10. Selected information from the accounting records of Thorne Company is as follows:
Net sales for 2008 .................................... $900,000
Cost of goods sold for 2008 ...........................
600,000
Inventory at December 31, 2007 ........................
180,000
Inventory at December 31, 2008 ........................
156,000
Thorne's inventory turnover for 2008 is
5.36 times.
3.85 times.
3.67 times.
3.57 times.
Explanation / Answer
Thorne Company Details Amt $ Cost of Goods Sold 2008 600,000 Inventory Dec31 2007 180,000 Inventory Dec31 2008 156,000 Average Inventory 2008 168,000 Inventory Turnover= COGS/Avg Inventory= 3.57 Times So the correct option is 3.57 times.
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