Question
Big Billy Corporation Balance Sheet December 31, 2015 Cash $ 40,000 Marketable Securities 60,000 Accounts Receivable 100,000 Inventory 200,000 Long term receivables 70,000 Property, plant
Big Billy Corporation
Balance Sheet
December 31, 2015
Cash $ 40,000
Marketable Securities 60,000
Accounts Receivable 100,000
Inventory 200,000
Long term receivables 70,000
Property, plant & equipment 130,000
Total Assets: $ 600,000
Current Liabilities $ 200,000
Long term Liabilities 120,000
Stockholders Equity 280,000
Total Liabilities & Stockholders Equity $ 600,000
Big Billy Corporation
Income Statement
For the Year Ended December 31, 2015
Net Sales $ 400,000
Cost of Goods Sold 240,000
Gross Margin $ 160,000
Operating Expenses 40,000
Income before Income Taxes $ 120,000
Income Tax Expense 30,000
Net Income $ 90,000
Based upon the Big Billy Corporation Balance Sheet and Income Statement, please answer the following: Assume the balance sheet reflects the average for the year.
What is the inventory turnover for this corporation? Round to one decimal
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Financial And Managerial Accounting The Basis For Business Decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
19th Edition
1260247937, 978-1260247930
