The Following Balance Sheet Information Is Provided for Gaynor Company

The following balance sheet information is provided for Gaynor Company: $\begin{array}{l}\begin{array}{|l}\hline \text { Assets}\\\hline \text { Cash}\\\hline \text { Accounts receivable}\\\hline \text { Inventory}\\\hline\end{array}\begin{array}{r|}\hline 2014 \\\hline \$ \quad 4,000 \\\hline 15,000 \\\hline \$ \quad 35,000\\\hline \end{array}\begin{array}{r|}\hline 2013 \\\hline \$ \quad2,000 \\\hline 12,000 \\\hline \$ \quad 38,000\\\hline \end{array}\end{array}$ 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 is correct.

Correct Answer:

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