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dolphi86 [110]
3 years ago
6

Industrialization Automation Company (IAC) has a quick ratio of 2.00; $24,750 in cash; $13,750 in accounts receivable; some inve

ntory; total current assets of $55,000; and total current liabilities of $19,250. In its most recent annual report, IAC reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How many times is Industrialization Automation Company (IAC) selling and replacing its inventory?
A. 0.35x
B. 30.30x
C. 19.70x
D. 21.67x
Business
1 answer:
Goshia [24]3 years ago
7 0

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.

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<h3 /><h3> Production Possibilities Schedule</h3>

Based on the  Production Possibilities Schedule table given pound of green beans is 20 while pounds of corn is 240.

Based on this if he produces 20 pounds of green beans he can as well produce 240 pounds of corn.

Jorge's Production Possibilities Schedule

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Learn more about  Production Possibilities Schedule here:brainly.com/question/26492942

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