Consider a Firm with an Annual Net Income of $20

question 65

Multiple Choice

Consider a firm with an annual net income of $20 million,revenue of $60 million and cost of goods sold of $25 million.If the balance sheet amounts show $2 million of inventory and $500,000 of property,plant & equipment,how many weeks of supply does the firm hold?

• A)12.50
• B)5.20
• C)2.60
• D)0.08
• E)4.16

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Definitions:

Interest Rate Floor

An agreement in which a lower limit is set on the interest rate that can be paid on a financial obligation.

Collar

A strategy in finance used to limit the range of possible returns on an investment, often by buying and selling options.

Ergonomics

The study and design of work environments to maximize safety, comfort, and efficiency for human use.

Automation

The use of technology and machinery to perform tasks without human intervention, often leading to increased efficiency and production.