#56

The following information pertains to Sheffield Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 48000
Accounts receivable (net)	31000
Inventory	20000
Property, plant and equipment (net)	212000
Total Assets	$311000

Liabilities and Stockholders Equity
Current liabilities	$ 48000
Long-term liabilities	100000
Stockholders equitycommon	163000
Total Liabilities and Stockholders Equity	$311000

Income Statement
Sales (net)	$ 122000
Cost of goods sold	70000
Gross profit	52000
Operating expenses	33000
Net income	$19000

Number of shares of common stock	8000
Market price of common stock	$20
Dividends per share	0.60

What is the inventory turnover for Sheffield?

0.29 times

7.10 times

3.50 times

3.11 times