Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.

\begin{array}{lrr}&2018&2017\\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses } & 23,000 & 18,000 \\\text { Total current assets } & \$ 109,000 & \$ 131,000\\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}

-Refer to the data for Pinecrest Company.
Competitors in Pinecrest Company's industry have an average inventory turnover of 20.8 times.Its inventory turnover for 2018
A)indicates that the company has too little inventory on hand at the end of 2018.
B)indicates that the company is pricing its products too low.
C)is equal to the number of days' sales in the company's inventory.
D)indicates that the market may be reacting to problems in the sales department by reducing demand for the company's products.

Which of the Following Statements Is Generally Considered Desirable

Multiple Choice

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