QUESTION 14: If a firm turns over its average inventory of $59,389,000 five times (IT=5), and...

14)

Cost of goods sold % = 100% - Gross profit % = 100% - 58% = 42%

Cost of goods sold = Average Inventory X Inventory tunrover

= 59.389 Million x 5

= 296.945 Million

Sales = Cost of goods sold / Cost of goods sold %

= 296.945 / 42%

= 707.01 Million

Correct choice A

15)

Annual sales = Receivables * 365/ Days of sales in hand

= 3.84 Million x (365/28.60)

= 49.007 Million

Correct choice B

16)

Target capital structure defines the mix of proposed debt and equity in the capital structure

Correct choice C