Consider a Firm with an Annual Net Income of $20

Multiple Choice

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $15 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) 7.50
B) 6.00
C) 6.93
D) 0.13
E) 4.16