A measure useful in evaluating the efficiency in managing inventories is:
a. inventory turnover.
b. average days to sell inventory.
c. Both (a) and (b).
d. None of the above. Use the following financial statement information as of the end of each year to answer Self-Study Questions 8–12.
2011
2010
Inventory
$ 54,000
$ 48,000
Current assets
81,000
106,000
Total assets
482,000
426,000
Current liabilities
27,000
36,000
Total liabilities
102,000
88,000
Common stockholders’ equity
280,000
238,000
Preferred stock
100,000
Net sales
784,000
697,000
Cost of goods sold
306,000
277,000
Net income
134,000
90,000
Tax expense
22,000
18,000
Interest expense
12,000
Dividends paid to preferred
stockholders
20,000
Dividends paid to common
15,000
10,000
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here