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

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Definitions:

Socially Optimal

A condition or point at which the benefit to society is maximized, often considered in economic contexts to represent the most efficient allocation of resources.

Cost-Benefit Analysis

An estimate of the costs and benefits of providing a good. When governments use cost-benefit analysis, they estimate the social costs and social benefits of providing a public good.

Marginal Social Benefits

The additional benefit to society as a whole from producing or consuming one more unit of a good or service.

Common Resource

A resource like air or water that is not owned by anyone, but its use is shared among a community or the public, often leading to overuse or depletion.