Just Camshafts sells auto parts. Provided below is selected financial information from the company's 2007 annual report: Just Camshafts forecasts that sales will grow by 25% in 2008 and that its cost of goods sold to sales ratio will be the same in 2008 as it was in 2007. If these assumptions prove correct and Just Camshafts inventory turnover ratio for 2008 is 4.5 what will be the level of inventory at the end of 2008?
A) $31,353
B) $38,320
C) $40,000
D) $42,314

Question

Just Camshafts sells auto parts. Provided below is selected financial information from the company's 2007 annual report:  Just Camshafts forecasts that sales will grow by 25% in 2008 and that its cost of goods sold to sales ratio will be the same in 2008 as it was in 2007. If these assumptions prove correct and Just Camshafts inventory turnover ratio for 2008 is 4.5 what will be the level of inventory at the end of 2008?
A) $31,353 
B) $38,320 
C) $40,000 
D) $42,314

Quizplus · Accepted Answer

The Answer of Just Camshafts sells auto parts. Provided below is selected financial information from the company's 2007 annual report:  Just Camshafts forecasts that sales will grow by 25% in 2008 and that its cost of goods sold to sales ratio will be the same in 2008 as it was in 2007. If these assumptions prove correct and Just Camshafts inventory turnover ratio for 2008 is 4.5 what will be the level of inventory at the end of 2008?
A) $31,353 
B) $38,320 
C) $40,000 
D) $42,314

Just Camshafts Sells Auto Parts