A) Consider the following information:

• Revenue = $100 000
• NOPAT = $20 000
• Cost of goods sold = $50 000
• Opening inventory = $200 000
• Closing inventory = $250 000
• Opening accounts payable = $100 000
• Closing accounts payable = $200 000

What would the inventory turnover ratio be? Select one:

a. 0.20

b. 0.22

c. 0.09

d. 0.44

B) A lemons problem can arise when:

Select one:

a. Communication from managers to investors is not entirely credible.

b. Managers are more informed about the value of their business ideas than investors.

c. All of these choices.

d. Investors lack the ability to interpret business opportunities.