A measure useful in evaluating the efficiency in managing inventories is:
a. inventory turnover.
b. average days to sell inventory.
c. Both (a) and (b).
d. None of the above.
Use the following financial statement information as of the end of each year to answer Sell-Test Questions 8-12.
$$
\begin{array}{c}
& 2012 & 2011 \\
\text { Inventory } & \$ 54,000 & \$ 48.000 \\
\text { Current assets } & 81,000 & 106,000 \\
\text { Total assets } & 382,000 & 326,000 \\
\text { Current liabilities } & 27,000 & 36,000 \\
\text { Total liabilities } & 102,000 & 88,000 \\
\text { Preferred stock } & 40,000 & 40,000 \\
\text { Common stockholders' equity } & 240,000 & 198.000 \\
\text { Net sales } & 784,000 & 697.000 \\
\text { Cost of goods sold } & 306,000 & 277,000 \\
\text { Net income } & 134,000 & 90,000 \\
\text { Tax expense } & 22,000 & 18,000 \\
\text { Interest expense } & 12,000 & 12,000 \\
\begin{array}{l}
\text { Dividends paid to preferred } \\
\text { stockholders }
\end{array} & 4,000 & 4.000 \\
\begin{array}{l}
\text { Dividends paid to common } \\
\text { stockholders }
\end{array} & 15,000 & 10.000 \\
\hline
\end{array}
$$