The following information pertains to Sampson 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 $ 45,000 Accounts receivable (net) 25,000 Inventory 11,000 Property, plant and equipment 210,000 Total Assets $291,000 Liabilities and Stockholders' Equity Current liabilities $ 50,000 Long-term liabilities 90,000 Stockholders' equity—common 151,000 Total Liabilities and Stockholders' Equity $291,000 Income Statement Sales $ 120,000 Cost of goods sold 55,000 Gross profit 65,000 Operating expenses 30,000 Net income $ 35,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share .50 What is the inventory turnover for Sampson? Group of answer choices 3,2 times 5 times 10.9 times 0.20 times

Sampson Company

The inventory turnover for Sampson is:

5 times.

Explanation:

a) Data and Calculations:

Assets

Cash and short-term investments               $ 45,000

Accounts receivable (net)                                25,000

Inventory                                                            11,000

Property, plant and equipment                     210,000

Total Assets                                                 $291,000

Liabilities and Stockholders' Equity

Current liabilities                                         $ 50,000

Long-term liabilities                                        90,000

Stockholders' equity—common                    151,000

Total Liabilities and Stockholders' Equity $291,000

Income Statement Sales                $ 120,000

Cost of goods sold                             55,000

Gross profit                                         65,000

Operating expenses                          30,000

Net income                                     $ 35,000

Number of shares of common stock 6,000

Market price of common stock             $20

Dividends per share                           $0.50

Inventory Turnover = Cost of goods sold/Average Inventory

= $55,000/$11,000

= 5 times

i'm pretty sure the answer is 60.