Answer:
The answer is 3.94x. There is no choice given is the correct choice.
Explanation:
We have Inventory turnover time = Cost of goods sold / Inventory balance. Thus, we need to find Cost of good sold and inventory balance as below:
Inventory balance = Current asset - cash balance - account receivable balance = 55,000 - 24,750 - 13,750 = $16,500.
Cost of goods sold = Annual sales x % of cost of goods sold over sales = 100,000 x 65% = $65,000.
Inventory turnover time = Cost of goods sold / Inventory = 65,000 / 16,500 = 3.94x
The answer is 3.94x. Thus, there is no correct answer in the multiple choice given out.
