Convex Industries Has Inventories of $218 Million, Current Assets of $1.4

question 87

Multiple Choice

Convex Industries has inventories of $218 million, current assets of $1.4 billion, and current liabilities of $504 million. What is its quick ratio?

• A) 1.17
• B) 0.94
• C) 2.81
• D) 2.35

---

Definitions:

Substitutes

Products or services that can replace or serve as alternatives to another, often influencing consumer choices and market competition.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.

Normal Good

A good for which a rise in income increases the demand for that good—the “normal” case.

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the unit price times the quantity sold.