Refer to Exhibit 3.1. What is the firm's inventory turnover ratio?

Exhibit 3.1

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

Balance Sheet (Millions of $)

Assets

2012

Cash and securities

$ 1,554.0

Accounts receivable

9,660.0

Inventories

13,440.0

Total current assets

$24,654.0

Net plant and equipment

17,346.0

Total assets

$42,000.0

Liabilities and Equity

Accounts payable

$ 7,980.0

Notes payable

5,880.0

Accruals

4,620.0

Total current liabilities

$18,480.0

Long-term bonds

10,920.0

Total debt

$29,400.0

Common stock

3,360.0

Retained earnings

9,240.0

Total common equity

$12,600.0

Total liabilities and equity

$42,000.0

Income Statement (Millions of $)

2012

Net sales

$58,800.0

Operating costs except depr'n

$54,978.0

Depreciation

$ 1,029.0

Earnings bef int and taxes (EBIT)

$ 2,793.0

Less interest

1,050.0

Earnings before taxes (EBT)

$ 1,743.0

Taxes

$ 610.1

Net income

$ 1,133.0

Other data:

Shares outstanding (millions)

175.00

Common dividends

$ 509.83

Int rate on notes payable & L-T bonds

6.25%

Federal plus state income tax rate

35%

Year-end stock price

$77.69

Select one: a. 4.17 b. 4.38 c. 4.59 d. 5.82 e. 5.07