Beach Wear has current liabilities of $350,000,a quick ratio of 1.65,inventory turnover of 3.2,and a current ratio of 2.9.What is the cost of goods sold?
A)$980,000
B)$1,060,000
C)$1,200,000
D)$1,400,000
E)$1,560,000

Question

Quizplus · Accepted Answer

Current assets = 2.9 × $350,000 = $1,015,000($1,015,000 - Inventory)/$350,000 = 1.65; Inventory = $437,500Costs of goods sold = 3.2 × $437,500 = $1,400,000

Beach Wear Has Current Liabilities of $350,000,a Quick Ratio of 1.65,inventory