If a Firm Has Net Sales of $400,000, Annual Cost

Multiple Choice

If a firm has net sales of $400,000, annual cost of goods sold of $315,000, an inventory turnover of 4.5 times a year, and an accounts receivable turnover of five times a year, the combined investment in inventories and accounts receivable would be:

A) $64,500
B) $92,000
C) $122,500
D) $150,000