Answer:
$3,115,770
Explanation:
Given:
Current ratio = 3.60
Current liabilities = $401, 000
Quick ratio = 1.50
Inventory turnover = 3.70
Current ratio is calculated by dividing your current assets by your current liabilities.
[tex]Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}[/tex]
[tex]3.60 = \frac{Current\ Assets}{401, 000}[/tex]
Current Assets = 3.60 × 401,000
= $1,443,600
[tex]Quick\ ratio = \frac{(Current\ Assets\ -\ Inventory)}{Current Liabilities}[/tex]
[tex]1.50 = \frac{1,443,600\ -\ Inventory}{401,000}[/tex]
1.50 × 401,000 = 1,443,600 - Inventory
601,500 = 1,443,600 - Inventory
Inventory = 1,443,600 - 601,500
= $842,100
[tex]Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}[/tex]
[tex]3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}[/tex]
Cost of Goods Sold = 3.70 × 842,100
= $3,115,770
