With a quick ratio of 2.00x, cash on hand of $33,525, and accounts receivable of $18,625...

 

Transcribed Image Text:

With a quick ratio of 2.00x, cash on hand of $33,525, and accounts receivable of $18,625 as well as some inventory, Alfred Inc. has $74,500 in total current assets and $26,075 in total current liabilities. In its most recent annual report, the company stated that its yearly sales were $200,000.00. In addition, 75% of sales go towards the company's cost of goods sold. How frequently did Alfred Inc. sell and replenish its stock over the previous year? A. 2.86x B. 8.01x C. 7.38x D. 6.71x With a quick ratio of 2.00x, cash on hand of $33,525, and accounts receivable of $18,625 as well as some inventory, Alfred Inc. has $74,500 in total current assets and $26,075 in total current liabilities. In its most recent annual report, the company stated that its yearly sales were $200,000.00. In addition, 75% of sales go towards the company's cost of goods sold. How frequently did Alfred Inc. sell and replenish its stock over the previous year? A. 2.86x B. 8.01x C. 7.38x D. 6.71x

Answer rating: 100% (QA)

The question is asking to calculate the inventory turnover ratio which is a measure of how many times a companys inventory is sold and replaced over a ... View the full answer