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