Carson Company Has an Inventory Turnover of 12

question 8

Multiple Choice

Carson Company has an inventory turnover of 12.75,and its inventory amounts to $2,400,000.What is the amount of cost of goods sold?

• A)$30,600,000
• B)$188,235
• C)$26,666,667
• D)$51,000

---

Definitions:

Caveat Emptor

A legal principle that the buyer assumes the risk of quality in a purchase unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, including provisions on the formation of contracts, descriptions of goods, quality, and return policies.

Organically Grown

Refers to food produced without the use of synthetic pesticides, fertilizers, and other non-natural methods.

Sale of Goods Act

Legislation governing the sale of goods that outlines the rights and obligations of the buyer and seller.