The Following Balance Sheet Information Is Provided for Gaynor Company

The following balance sheet information is provided for Gaynor Company: $\begin{array}{lrr}\text { Assets } & \text { Year 2 } &{\text { Year 1 }} \\\text { Cash } & \$ 4,000 & \$ 2,000 \\\text { Accounts receivable } & 15,000 & 12,000 \\\text { Inventory } & \$ 35,000 & \$ 38,000\end{array}$ Assuming Year 2 cost of goods sold is $153,300, what is the company's inventory turnover?

A) 4.0 times
B) 4.4 times
C) 4.2 times
D) None of these answers are correct.

Correct Answer:

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