Solve the Problem

question 1

Multiple Choice

Solve the problem.
-A furniture store has an average inventory of $5,398 at retail, and an average inventory of $3,757 at cost. The cost of goods sold for the same period is $26,073.58 and sales of furniture were $37,246.20. Find (a) Stock turnover at cost, and (b) stock turnover at retail. Round to the nearest hundredth.

• A)(a)1.44, (b)1.43
• B)(a)6.90, (b)6.94
• C)(a)6.94, (b)6.90
• D)(a)4.83, (b)9.91

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Definitions:

Contract

An agreement between two or more parties that is enforceable by law and legally binding.

Subject Matter

The topic or substance of a discussion, document, or work, especially in legal contracts or litigation.

Sold

The completed process of transferring ownership of a good or property in exchange for money or value.

Invitation to Treat

An invitation for parties to make offers or negotiate, which itself does not bind the parties to a contract.