1.

The merchandise turnover ratio

Multiple Choice

• Is cost of goods sold divided by ending inventory times 365

• Is ending inventory divided by cost of goods sold

• Is cost of goods sold divided by average merchandise inventory

• Is average merchandise inventory divided by cost of goods sold

• Is cost of goods sold divided by ending inventory

• 2.

  DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value.

  Multiple Choice

• $1,800

• $2,000

• $1,400

• $1,500

• $1,350

• 3.

  Toys "R" Ltd. had cost of goods sold of $6,000 million, ending inventory of $2,500 million, and average inventory of $2,000 million. The merchandise turnover is

  Multiple Choice

• 0.33

• 2.40

• 3.00

• 0.4

• 12.00

• 4.

  On December 31, as a short-term investment, Music City purchased 300 Radio Land Corporation common shares at $50 per share plus a $50 commission. The amount recorded as a debit to Short-term Investments- Radio Land would be

  Multiple Choice

• $5,000

• No transaction need be recorded

• $50

• $15,000

• $15,050