Use the Following Information for Questions

question 18

Multiple Choice

Use the following information for questions
Nelly Inc.reported credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year.The average inventory for the year was $6,000,000.
-The inventory turnover ratio for the year was

• A)3.0 times.
• B)33.3 times.
• C)4.0 times.
• D)25.0 times.

---

Definitions:

Price Level

Refers to the average of all current prices for goods and services in an economy.

Real Wage

The purchasing power of wages, defined by how much goods and services the wages can buy, adjusting for the level of prices in an economy.

Cyclical Unemployment

This type of unemployment occurs due to economic downturns or recessions, reflecting a lack of demand for goods and services in the market.

Frictional Unemployment

Unemployment that occurs when workers are between jobs or are entering the workforce for the first time; it is often seen as a natural and necessary part of a healthy economy.