Use the Following Information for Questions

question 7

Multiple Choice

Use the following information for questions.
Nelly Inc. reported net 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.
-A supplier to a company would be most interested in the

• A) asset turnover ratio.
• B) profit margin ratio.
• C) current ratio.
• D) free cash flow.

---

Definitions:

Normal Distribution

A statistical distribution where data forms a symmetrical bell-shaped curve around the mean, representing how many natural phenomena are distributed.

Attribute Inspection

An inspection that classifies items as being either good or defective.