Consider a Firm with a 2007 Net Income of $20

Multiple Choice

Consider a firm with a 2007 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