# Correct cost of goods sold 3360000 average inventory

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Correct. Cost of goods sold: \$3,360,000; Average inventory: (\$900,000+\$1,020,000) / 2 = \$960,000; Inventory turnover: \$3,360,000 / \$960,000 = 3.5.b. 4.8125 times per year. c. 5.0 times per year. d. 4.0 times per year. FeedbackThe correct answer is: 3.5 times per year.
Question 8CorrectMark 10.00 out of 10.00Flag questionQuestion textBenson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 \$720,000; Accounts receivable, December 31 960,000; Merchandise inventory, January 1 900,000; Merchandise inventory, December 31 1,020,000; Gross sales 4,800,000; Sales returns and allowances 180,000; Net sales 4,620,000; Cost of goods sold 3,360,000; Income before interest and taxes 720,000; Interest on bonds 192,000; Net income 384,000; The times interest earned ratio is:
Question 9CorrectMark 10.00 out of 10.00Flag questionQuestion textThe working capital of a company is equal to:
Question 10CorrectMark 10.00 out of 10.00Flag questionQuestion textThe gross profit percentage decreased from 36.5% in 2014 to 24.8% in 2015. What is the trend inthis change?
Question 11CorrectMark 6.00 out of 6.00Flag questionQuestion text(T / F) A company that is quite profitable may find it difficult to pay its accounts payable if a large portion of its sales are made on accounts receivable.Select one:
True False FeedbackCorrect. The accrual net income shown on the income statement is not necessarily cash basis income and does not indicate cash flows.The correct answer is 'True'.
T / F) If ending inventory is understated, cost of goods sold is understated, resulting in an overstatement of gross margin, net income, and retained earnings.
Question 2CorrectMark 1.00 out of 1.00Flag questionQuestion text(T / F) When ending inventory is misstated in the current year, companies carry that misstatement forward into the next year.