Lisa, Inc.

Statement of Financial Position

December 31, 2009

(in thousands)

                                                                                 2009     2008

Assets - Current    

Cash                                                                             $30      $25

Trading securities                                                                 20       15

Accounts receivable (net)                                                         45       30

Inventories (at lower of cost of market)                                           60       50

Prepaid items                                                                     15       20

Total Current Assets                                                             170       140

Assets - Long-Term    

Long-term investments Securities (at lost)                                         25       20

Property, plant & equipment Land (at cost)                                         75       75

Building (net)                                                                       80       90

Equipment (net)                                                                    95      100

Intangible assets Patents (net)                                                     35       17

Goodwill (net)                                                                      20        13

Total Long-Term Assets                                                             330      315

Total Assets                                                                        $500     $455

Liabilities - Current      

Notes payable                                                                       $23      $12

Accounts payable                                                                    47        28

Accrued interest                                                                     15        15

Total current liabilities                                                               85        55

Liabilities - Long-Term      

Notes payable 10% due 12/31/2012                                                 10       10

Bonds payable 12% due 12/31/2011                                                 15       15

Total long-term debt                                                                  25       25

Total liabilities                                                                        110      80

Equity      

Preferred - 5% cumulative, $100 par, nonparticipating, authorized, issued and

                                                                                        100    100

outstanding, 1,000 shares

Common - $10 par 20,000 shares authorized, 15,000 issued and outstanding shares  150    150

Additional paid-in capital - common                                                     75     75

Retained earnings                                                                       65     50

Total Equity                                                                            390    375

Total Liabilities & Equity                                                               $500   $455

Assume sales and cost of goods sold for 2009 were $300,000 and $220,000, respectively. Lisa Inc.'s inventory turnover was

A. 5.0 times.

B. 4.4 times.

C. 4.0 times.

D. 3.7 times.