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13. b. Inventory turnover = Cost of goods sold/Average inventory {$306,000/[($54,000 + $48,000)/2]} = 6 times. Thus, days in inventory = 60.8 (365/6), not (a)
13. b. Inventory turnover = Cost of goods sold/Average inventory {$306,000/[($54,000 + $48,000)/2]} = 6 times. Thus, days in inventory = 60.8 (365/6), not (a) 64.4, (c) 6, or (d) 24 days.
14. b. Current ratio = Current assets/Current liabilities ($81,000/$27,000) = 3.0:1, not (a) 1.26:1, (c) 0.80:1, or (d) 3.75:1.
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Louise Crawford, Stuart Manson
7th Edition
1473760186, 9781473760189
