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.