Sputter Motors Has Sales of $3,450,000, Total Assets of $1,240,000

question 49

Multiple Choice

Sputter Motors has sales of $3,450,000, total assets of $1,240,000, cost of goods sold of $2,550,000, and an inventory turnover of 6.38. What is the amount of Sputter's inventory?

• A) $421,054
• B) $638,112
• C) $543,000
• D) $399,687

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Definitions:

Economic Power

The ability of countries, businesses, or individuals to influence market conditions, production, and financial resources on a scale that can impact global or local economies.

Average Total Cost Curve

A graphical representation showing the average total cost of producing different quantities of a good or service.

Industry Demand Curve

A graphical representation showing the total demand for the products or services of a particular industry at various price levels.

Government Franchising

A process by which a government grants a company the exclusive right to operate, produce, or sell a service within a certain area.