Prepaid expenses and inventories


Selected year-end data for the Brayer Company are presented below:

Current liabilities $600,000
Acid-test ratio 2.5 to 1
Current ratio 3.0 to 1
Cost of goods sold $500,000

The company has no prepaid expenses and inventories remained unchanged during the year. Based on these data, the company's inventory turnover ratio for the year was closest to:

a) 1.20 times.

b) 2.40 times.

c) 1.67 times.

d) 2.33 times.

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Accounting Basics: Prepaid expenses and inventories
Reference No:- TGS056098

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