Hi All,

I just took the Thomas Edison 20-question mock exam for Principles of Finance. I only got two wrong....I'm happy with that.

One of my wrong answers was a silly mistake. But I can't figure out the reasoning behind the other question I got wrong.

Maybe an accounting/math/finance guru can help me understand how TESC came up with the answer they did.

Here's the question:

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A firm has a current ratio of 2.4, a quick ratio of 1.5, an inventory turnover of 6 times, and current liabilities of $600,000. What is the firm's level of sales?

a. $1,420,000
b. $1,960,000
c. $2,160,000
d. $3,240,000 <---- Correct Answer
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I understand each of the individual elements contained in the question. But I can't figure out how to put it all together to find the "level of sales".

Can anyone help?

__________________
My name is Rob
So far, I have earned 142 credits (12 not used).

Excelsior College
- BS Psychology (5 courses/exams to go)
- BS Business (2 courses/exams to go)
____________
Upcoming: N/A
In-progress: CSU-Pueblo: Labor Relations course
Most Recently Completed: English Composition at PFC (97).
Exams/Courses Passed To Date (43):
- Courses (4): 1 ECE, 1 CSU-Pueblo, 2 PFC.
- Exams (39): 24 DANTES, 15 CLEP.
GPA: 4.0