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QUESTION
Benson Company shows the following data on its 2014 Financial Statements:
Benson Company shows the following data on its 2014 Financial Statements:
Acct receivable, Jan 1 $720,000
Acct receivable Dec 31, 960,000
Merch inventory Jan 1 900,000
Merch inventory Dec 31, 1,020,000
Gross Sales 4,8000,000
Sales returns and allowances 180,000
Net Credits Sales 4,620,000
Cost of goods sold 3,360,000
Earnings before interest and taxes (Operating income) 720,000
Interest on bonds 192,000
Net income 384,000
The inventory turnover is:
A. 5.0 times per year B. 4.8125 times per year C. 4.0 times per year D. 3.5 times per year
