If a Firm Has Net Sales of $400,000, Annual Cost

question 7

Multiple Choice

If a firm has net sales of $400,000, annual cost of goods sold of $315,000, an inventory turnover of 4.5 times a year, and an accounts receivable turnover of five times a year, the combined investment in inventories and accounts receivable would be:

• A) $64,500
• B) $92,000
• C) $122,500
• D) $150,000

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Definitions:

Behavioral Psychology

Behavioral psychology is a field of psychology that focuses on studying and altering human behavior through conditioning and reinforcement.

Functional Psychology

A branch of psychology that focuses on how mental and behavioral processes function to enable people to adapt, survive, and flourish.

Accident

An unexpected and unintentional event that typically results in damage or injury.

Guilty

A legal term for a person determined to have committed a crime or a feeling of responsibility for wrongdoing.