2A2M MAKAY CORPORATION HAS DECIDED TO INCLUDE CERTAIN FINANCIAL RATIO...

57.

CSO: 2A2c

LOS: 2A2m

Makay Corporation has decided to include certain financial ratios in its year-end annual

report to shareholders. Selected information relating to its most recent fiscal year is

provided below.

• Cash

$ 10,000

• Accounts receivable (end of year)

20,000

• Accounts receivable (beginning of year)

24,000

• Inventory (end of year)

30,000

• Inventory (beginning of year)

26,000

• Notes payable (due in 90 days)

25,000

• Bonds payable (due in 10 years)

35,000

• Net credit sales for year

220,000

• Cost of goods sold

140,000

Makay’s average inventory turnover for the year was

a.

4.7 times.

b.

5.0 times.

c.

5.4 times.

d.

7.9 times.