Based on the Following Data for the Current Year, Determine

question 3

Multiple Choice

Based on the following data for the current year, determine the inventory turnover? $\begin{array}{ll}\$ 517,500 & \text { Net sales on account during the year } \\450,000 & \text { Cost of merchandise sold during the yeat } \\50,000 & \text { Accounts receivable, be ginning of year } \\40,000 & \text { Accounts receivable, end of year } \\110,000 & \text { Inventory, be ginning of year } \\140,000 & \text { Inventory, end of year }\end{array}$

• A) 7.2
• B) 3.6
• C) 3.2
• D) 4.2

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Definitions:

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.