Determine the Cost of Sales for a Firm with the Following

question 14

Multiple Choice

Determine the cost of sales for a firm with the following financial ratios and data: Current ratio = 3.0; Quick ratio = 2.0; Current liabilities $1,000,000; Inventory turnover 6 times

• A) $2,000,000
• B) $6,000,000
• C) $3,000,000
• D) $1,000,000

---

Definitions:

Indifference Curves

Indifference curves are graphical representations in microeconomics, showing combinations of two goods between which a consumer is indifferent, reflecting preferences.

Formula

A mathematical expression that calculates or describes a relationship among different variables.

Marginal Rate

The rate at which one variable changes as another variable changes marginally or slightly.

Substitution

The economic principle of replacing one input or good for another due to changes in prices or preferences.