Kannan Carpets Ltd Has Asked You to Calculate the Company's

question 93

Multiple Choice

Kannan Carpets Ltd has asked you to calculate the company's current ratio for 2016.All you have is a partial balance sheet and some assumptions.Using the information provided, calculate Kannan's current ratio for 2001. Gross profit margin = 50%
Inventory turnover (COGS/Inv) = 5
2016 sales = $3000

• A)0.3
• B)0.8
• C)1.6
• D)2.2

---

Definitions:

Formal Operations

The final stage of cognitive development (according to Piaget), characterized by the ability to think abstractly, reason logically, and manage problems systematically.

Adolescence

Period in development between the onset of puberty and adulthood. It usually begins between 11 and 13 years of age.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychology, a part of the mind in which innate instinctive impulses and primary processes are manifest.