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The following information is available for ABC Company: Current Ratio                3.5 Acid test ratio            &nbs

The following information is available for ABC Company:

Current Ratio                3.5
Acid test ratio              3.0
Inventory turnover       8.0

Year-end current liabilities $600,000
Beginning inventory            $500,000

How much is the cost of sales during the year?
a. $3,200,000
b. $6,400,000
c. $2,400,000
d. $1,600,000

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Answer #1

Answer: 3200000

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