Value creation during the transactional sale is considerable

Suppose you are told that over the past four years, sales have increased at rates of 10%, 8%, 6%, and 4%. What has been the average annual increase in sales over the past four years?

A) 7.0% B) 6.7% C) 6.4% D) 6.5%

The accounts payable turnover ratio uses purchases on account in its computation. Although firms do not disclose their purchases, the analyst can calculate the purchase amount as follows:

a. Purchases = Cost of Goods Sold + Ending Inventory + Beginning Inventory b. Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory c. Purchases = Cost of Goods Sold - Ending Inventory + Beginning Inventory d. Purchases = Cost of Goods Sold - Ending Inventory - Beginning Inventory e. Purchases = Cost of Goods Sold x Ending Inventory - Beginning Inventory