Refer to the following selected financial information from Texas Electronics. Compute the companys inventory turnover for Year 2.

	Year 2			Year 1
Cash	$	39,500		$	34,250
Short-term investments		110,000			70,000
Accounts receivable, net		95,500			89,500
Merchandise inventory		131,000			135,000
Prepaid expenses		14,100			11,700
Plant assets		398,000			348,000
Accounts payable		103,400			117,800
Net sales		721,000			686,000
Cost of goods sold		400,000			385,000

Multiple Choice

• 3.05.

• 2.96.

• 3.62.

• 5.50.

• 3.01.