A Company's Data Is Presented Below A)7,840
B)8,160
C)8,000
D)8,480
E)7,360

question 39

Multiple Choice

A company's data is presented below.Desired ending inventory is a consistent percentage of the next quarter's sales and the previous year's fourth quarter ending inventory of 560 units meets this requirement.Compute the expected production in the third quarter of the current year. $$\begin{array} { l l l l l } \text { Quarter } & 1 & 2 & 3 & 4 \\\text { Expected sales urits } & 7,000 & 5,000 & 8,000 & 6,000 \\\text { Urits produced } & 6,840 & ? & ? & ?\end{array}$$

• A)7,840
• B)8,160
• C)8,000
• D)8,480
• E)7,360

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Definitions:

Cash Conversion Cycle

A metric that shows the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Average Inventory

An accounting metric that estimates the value or quantity of inventory over a period to assess company efficiency.

Accounts Receivable

Funds that customers owe to a business for the products or services received but not yet paid for.

Aggregate Demand

The entirety of consumer and business demand for goods and services in an economy, assessed at an overall price level within a defined time span.