Given the Following Information, Calculate the Firm's Stockturn Rate A) 7
B) 10
C) 3
D) 6
E) Cannot

question 86

Multiple Choice

Given the following information, calculate the firm's stockturn rate. $$\begin{array} { l c } \text { Net sales } & \$ 480,000 \\\text { Gross margin \% } & 50 \% \\\text { Average inventory at cost } & \$ 40,000\end{array}$$

• A) 7
• B) 10
• C) 3
• D) 6
• E) Cannot be determined from data given.

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Definitions:

Gold Reserves

The amount of gold held by a central bank or government to support the value of its currency and to settle debts or engage in trade.

Create Money

The process by which the central bank or financial institutions increase the money supply in the economy, typically through activities such as lending or purchasing government securities.

Demand Deposits

Bank account balances that can be withdrawn on demand with no prior notice, such as checking accounts, providing liquidity and flexibility for accountholders.

Inflation

The rate of growth in the average cost of goods and services, which lowers the purchasing capacity.