Figure 2-15 Information from the Records of Chrome Ponies Enterprises

question 164

Multiple Choice

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Refer to Figure 2-15. What is the cost of goods sold?

• A) $36,500
• B) $28,600
• C) $29,400
• D) $29,500

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Definitions:

Liquidity

A firm’s cash and marketable securities position, refers to its ability to meet maturing obligations. A liquid asset is any asset that can be quickly sold and converted to cash at its “fair” value. Active markets provide liquidity.

Inventory Turnover Ratio

Sales divided by inventories.

Liquidity Position

A measure of a company or individual's ability to quickly convert assets into cash to meet financial obligations.

Efficiently

The ability to achieve a goal or perform a task with the least waste of time and effort; effectiveness and efficiency combined.