Answer:
$3,115,770
Step-by-step 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.
![Current\ ratio = (Current\ Assets)/(Current\ Liabilities)](https://img.qammunity.org/2021/formulas/business/college/1hkcbzweifdar8ysjec26u4cab33g1xbid.png)
![3.60 = (Current\ Assets)/(401, 000)](https://img.qammunity.org/2021/formulas/business/college/yuzbs7y7z1jpz06d369p2pd1g7c5m060u8.png)
Current Assets = 3.60 × 401,000
= $1,443,600
![Quick\ ratio = ((Current\ Assets\ -\ Inventory))/(Current Liabilities)](https://img.qammunity.org/2021/formulas/business/college/ndd9sxc21lgij0845w1jnlg91lek0d5m9p.png)
![1.50 = (1,443,600\ -\ Inventory)/(401,000)](https://img.qammunity.org/2021/formulas/business/college/5o6qmpy5u0ztlbyeu3ygvl91rrlj1aj9lb.png)
1.50 × 401,000 = 1,443,600 - Inventory
601,500 = 1,443,600 - Inventory
Inventory = 1,443,600 - 601,500
= $842,100
![Inventory\ Turnover = (Cost\ of\ Goods\ Sold)/(Inventory)](https://img.qammunity.org/2021/formulas/business/college/ytqzpj2f5h9axk98w596fqkq70ugm08o3i.png)
![3.70 = (Cost\ of\ Goods\ Sold)/(842,100)](https://img.qammunity.org/2021/formulas/business/college/a00wf9uccga6tpy0qdm26jbp9cihb72blg.png)
Cost of Goods Sold = 3.70 × 842,100
= $3,115,770