MARNI COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets $ 50,000 100,000 200,000 650,000 $1,000,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $ 100,000 90,000 250,000 100,000 50,000 410,000 $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Fixed lease expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (40%) Net income $2,000,000 1,750,000 $ 250,000 30,000 10,000 60,000 $ 150,000 25,000 $ 125,000 50,000 $ 75,000 Refer to the tables above. The firm's inventory turnover ratio is