A Farm Supply Store Starting with a $40,000 Inventory at Cost

question 8

Multiple Choice

A farm supply store starting with a $40,000 inventory at cost expects to sell $400,000 (cost of sales) of merchandise in the coming year. It plans to turn over its stock 10 times during the year. How much merchandise must the shop purchase during the year?

• A) $200,000
• B) $400,000
• C) $420,000
• D) $440,000
• E) None of the above.

---

Definitions:

Medicare Program

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Hispanic Americans

People living in the United States who are descendants or immigrants from Spanish-speaking countries, contributing to the cultural diversity of the nation.

Medical Care

Professional diagnosis, treatment, and prevention of illness or injury by health professionals.

Health Literacy

The capability to acquire, comprehend, interpret, and apply medical information to make suitable health choices and adhere to treatment guidelines.