Answer:
Sampson Company
The inventory turnover for Sampson is:
5 times.
Explanation:
a) Data and Calculations:
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 11,000
Property, plant and equipment 210,000
Total Assets $291,000
Liabilities and Stockholders' Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders' equity—common 151,000
Total Liabilities and Stockholders' Equity $291,000
Income Statement Sales $ 120,000
Cost of goods sold 55,000
Gross profit 65,000
Operating expenses 30,000
Net income $ 35,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share $0.50
Inventory Turnover = Cost of goods sold/Average Inventory
= $55,000/$11,000
= 5 times
