What dragon inventory turnover ratio is

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Reference no: EM132736556

The following information was summarized from Dragon Company's financial reports:

2016 Balance Sheet: Cash = $50; short-term investments = $80; inventories = $400; accounts receivable = $100; and accounts payable = $125. 2015 Balance Sheet: Cash = $45; short-term investments = $85; inventories = $360; accounts receivable = $120; and accounts payable = $100. 2016 Income Statement: Sales = $1,500 and cost of goods sold = $1,000 2015 Income Statement: Sales = $1,400 and cost of goods sold = $800

Problem 1: Based on this information, Dragon's inventory turnover ratio for 2016 is:

A) 2.37x

B) 2.50x

C) 3.95x

D) 2.63x

Reference no: EM132736556

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