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***There are 1,000 preferred shares outstanding. Each share earns a $1 dividend per year. ****There are 1,000 common shares outstanding. What was Bob's inventory turnover during 2020?

A 2.00 times

b 2.22 times

c 2.50 times

d 10.00 times

Bob's Bagels Ltd. Statement of financial position As at December 31, 2020 Bob's Bagels Ltd. Statement of income For the year ending December 31, 2020 2020 2019 Sales revenue $40,000 $35,000 Cost of goods sold 10,000 9,000 2020 2019 Cash $15,000 $8,000 Accounts receivable 5.000 6,000 Inventory 4,000 5,000 Gross profit 30,000 26,000 Prepaid expenses 1.000 2,000 Operating expenses 7,000 6,000 Current assets 25,000 21,000 Depreciation 2,000 2,000 Property, plant and equipment (net) 24,000 26,000 Interest 1,000 2,000 Total assets $49,000 $47.000 Income before taxes 20,000 16,000 Income taxes 10,000 8,000 Bank demand loan 1,000 2,000 Net Income 10,000 8,000 Accounts payable 2,000 3,000 Current portion, long-term debt 1.000 2.000 Net Income $10,000 $8.000 Current liabilities 4,000 7,000 Dividend-Preferred 1,000 1,000 2.000 1,000 Dividends-Common Increase in retained earnings $7,000 $6,000 Long term debt 10,000 12,000 Preferred shares** 10,000 10,000 Common shares**** 1,000 1,000 24,000 17,000 Retained earnings Shareholders' equity 35,000 28,000 Total debt and shareholders' equity $49,000 $47.000

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