Use the Following Information for Questions

question 3

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 liquidity ratio measures the

• A) net income or operating success of a company over a period of time.
• B) ability of the company to survive over a long period of time.
• C) short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.
• D) ability of a company to raise capital.

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Definitions:

Sales Territories

Designated geographic or demographic areas assigned to sales representatives or teams to manage and generate sales.

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The process of reviewing and evaluating the profitability, risks, and potentials of a customer's account.