Inventory turned over 7 times during the year at Rockdale Electronics. Similar electronics retailers have an inventory turnover equal to 12 times per year. Which of the following best explains the state of Rockdales inventory management?

	a.	The company sold too much inventory during the year.
	b.	The company is performing much better than its competitors.
	c.	The company needs to increase sales and decrease the amount of inventory on hand.
	d.	The company should increase the amount of goods on hand to accommodate the growth in inventory demand.

SPI-K planned to raise $500,000 by issuing bonds. The bond certificates were printed bearing a stated interest rate of 6%, which was equal to the yield rate of interest. However, before the bonds could be issued, economic conditions forced the yield rate up to 7%. If the life of the bonds is 10 years and interest is paid annually on December 31, how much will the company receive from the sale of the bonds?

	a.	exactly $500,000
	b.	less than $500,000
	c.	more than $500,000
	d.	The 6% bonds will not be sold at all. The company will be required to have the certificates reprinted bearing the new yield rate of 7%.