A Firm Reports a Current Ratio of 2 and a Quick

question 31

Multiple Choice

A firm reports a current ratio of 2 and a quick ratio of 1.2.The firm has total current assets of $4,000.If the firm reports cost of goods sold at $25,000 for the given year,what is the average age of their inventory?

• A) 12.35 days
• B) 15.63 days
• C) 18.24 days
• D) 23.36 days

---

Definitions:

Nefertiti

An ancient Egyptian queen, known for her beauty and as the royal consort of Pharaoh Akhenaten; her iconic bust is one of the most famous pieces of Egyptian art.

Hatshepsut

One of the few female pharaohs of ancient Egypt, who reigned successfully in the early 15th century BCE and expanded Egypt's trade and building projects.

Upper Egypt

The southern portion of Egypt, which stretches from Cairo to Aswan, historically known for its ancient cities and pharaonic sites.

Lotus

A plant associated with purity and beauty in various cultures, often found in water gardens and depicted in art and literature, symbolizing elegance and rebirth.