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The following information was extracted from the accounting records of Alaska Medical Supplies. Net credit sales 20X5: $832,000 20X4: $760,000 Cost of goods sold 20X5:

The following information was extracted from the accounting records of Alaska Medical Supplies.

  • Net credit sales
    • 20X5: $832,000
    • 20X4: $760,000
  • Cost of goods sold
    • 20X5: $440,000
    • 20X4: $350,000
  • Cash, Dec. 31
    • 20X5: $125,000
    • 20X4: $110,000
  • Accounts receivable, Dec. 31
    • 20X5: $180,000
    • 20X4: $140,000
  • Inventory, Dec. 31
    • 20X5: $70,000
    • 20X4: $50,000
  • Accounts payable, Dec. 31
    • 20X5: $115,000
    • 20X4: $108,000

Compute the inventory-turnover ratio for 20X5. Alaska Medical Supplies rounds all calculations to two decimal places.

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1.26

3.50

3.52

7.33

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