Refer to the tables above. The firm's inventory turnover ratio is ____.

a) 0.1x

b) 2.7x

c) 8x

d) 10x

TEW COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets $ 20,000 80,000 50,000 250,000 $ 400,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $ 40,000 60,000 130,000 100,000 10,000 60,000 $ 400,000 TEW 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 (35%) Net income $ 500,000 200,000 $300,000 20,000 10,000 40,000 $ 230,000 20,000 $ 210,000 73,500 $ 136,500