Selected Data from Sheridan Corporation's Year-End Financial Statements Are Presented

question 12

Multiple Choice

Selected data from Sheridan Corporation's year-end financial statements are presented below.The difference between average and ending inventory is immaterial.
$\begin{array}{|l|r|}\hline \text { Current Ratio } & 2.0 \\\hline \text { Acid-Test Ratio } & 1.5 \\\hline \text { Current Liabilities } & \$ 120,000 \\\hline \text { Lnventory Turnover } & 8 \text { times } \\\hline \text { Gross Profit Margin } & 40 \% \\\hline \text { Prepaid Expenses } & \$ 0 \\\hline\end{array}$
What were Sheridan's sales for the year?

• A) $240,000.
• B) $480,000.
• C) $800,000.
• D) $1,200,000.

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Definitions:

Total Return

Total return is the full return on an investment over a specific time period, including capital gains and dividends, expressed as a percentage of the initial investment cost.

Information Surprises

Events or news that were unexpected by market participants, often leading to sudden changes in asset prices.

Nondiversifiable Risk

The portion of investment risk that cannot be eliminated through diversification, attributed to market factors affecting all investments.

Inflation

The upward movement in the general price index of goods and services, which diminishes the purchasing ability.