Reference no: EM131794142

Question - The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments $ 40,000

Accounts receivable (net) 25,000

Inventory 20,000

Property, plant and equipment 210,000

Total Assets $295,000

Liabilities and Stockholders' Equity

Current liabilities 60,000

Long-term liabilities 85,000

Stockholders' equity-common 150,000

Total Liabilities and stockholders' equity $295,000

Income Statement

Sales $ 85,000

Cost of goods sold 45,000

Gross margin 40,000

Operating expenses 20,000

Net income $ 20,000

Number of shares of common stock 6,000000

Market price of common stock $20

Dividends per share 0.90

Cash provided by operations $30,000

What is the inventory turnover for this company? Round your answer to one decimal point.

a. 2.25 times

b. 2.00 times

c. 1.00 times

d. 0.44 times