The financial statements of the company are shown below:

The Company
Income Statement 2017
Sales	$	10,050,000
Cost of Goods Sold		5,825,000
Depreciation Expense		580,000
Gross Profit	$	3,645,000
Selling and Administrative Expenses		2,950,000
EBIT	$	695,000
Interest Expense		275,000
Income before Tax	$	420,000
Taxes		272,000
Net Income	$	148,000

The Company
Comparative Balance Sheets
	2017			2016
Cash	$	46,000		$	41,000
Accounts Receivable		647,000			675,000
Inventory		626,000			541,000
Total Current Assets	$	1,319,000		$	1,257,000
Fixed Assets		2,200,000		$	1,535,000
Total Assets	$	3,519,000		$	2,792,000
Accounts Payable	$	324,000		$	275,000
Bank Loans		495,000			419,000
Total Current Liabilities	$	819,000		$	694,000
Long-term Bonds		1,650,000			1,225,000
Total Liabilities	$	2,469,000		$	1,919,000
Common Stock (200,000 shares)		200,000			200,000
Retained Earnings		850,000			673,000
Total Equity	$	1,050,000		$	873,000
Total Liabilities and Equity	$	3,519,000		$	2,792,000

Note: The common shares are trading in the stock market for $20 per share.

Refer to the financial statements of The Company. The firm's inventory turnover ratio is ________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

Multiple Choice

• 7.5

• 9.3

• 11.6

• 10.0