Savory Thymes, Inc

question 159

Multiple Choice

Savory Thymes, Inc. had net credit sales of $9,000,000 and cost of goods sold of $5,250,000 for the year. The average inventory for the year amounted to $1,250,000. The inventory turnover for the year is

• A) 7.2 times.
• B) 5.6 times.
• C) 5.2 times.
• D) 4.2 times.

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Definitions:

Supply Shock

A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price.

Recessionary Gap

A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underperformance in the economy.

Aggregate Demand Curve

A graphical representation of the relationship between the total demand for goods and services in an economy at different price levels.

Long-Run Aggregate Supply

The total quantity of goods and services an economy can produce when resources are fully employed, assuming constant technology and factors of production.