Highly Suspect Corp. has current liabilities of $420,000, a quick ratio of 1.40, inventory turnover of 3.50, and a current ratio of 3.80. What is the cost of goods sold for the company?

** As we have discussed on problems like these, identify what information you need to answer the question and then look to the information you are given to connect you to the missing data. This problem will require multiple steps, but take your time, think logically and I trust you will find the answer. Be sure to use your formula sheet and notes.

Multiple Choice

• $1,260,000

• $1,411,200

• $5,586,000

• $3,528,000

• $588,000