Question

The following information is available for ABC Company: Current Ratio                3.5 Acid test ratio            &nbs

The following information is available for ABC Company:

Current Ratio                3.5
Acid test ratio              3.0
Inventory turnover       8.0

Year-end current liabilities $600,000
Beginning inventory            $500,000

How much is the cost of sales during the year?
a. $3,200,000
b. $6,400,000
c. $2,400,000
d. $1,600,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: 3200000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for...
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 59,140 Short-term investments 15,000 Accounts receivable 60,000 Inventory 290,000 Prepaid expenses 6,520 Accounts payable 109,000 Other current payables 32,200
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for...
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 55,320 Short-term investments 12,500 Accounts receivable 55,000 Inventory 240,000 Prepaid expenses 9,780 Accounts payable 106,500 Other current payables 31,500
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for...
Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 60,840 Short-term investments 16,500 Accounts receivable 63,000 Inventory 320,000 Prepaid expenses 12,220 Accounts payable 110,500 Other current payables 32,700
The Dalbay Company had a Quick Ratio of 1.4, a Current Ratio of 3.0, and Inventory...
The Dalbay Company had a Quick Ratio of 1.4, a Current Ratio of 3.0, and Inventory Turnover of 6X, total current assets of $675,000 and cah of $100,000 at the end of the year. What were Dalbay's annual sales for the year?
Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 2.0, and...
Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 2.0, and its working capital is $330,000. Answer each of the following questions independently, always referring to the original information. Required: How much does the firm have in current liabilities? (Do not round intermediate calculations.) If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? (Do not...
Based on the information below please calculate the Current ration, Quick (Acid Test) Ration, and Current...
Based on the information below please calculate the Current ration, Quick (Acid Test) Ration, and Current Cash Debt Coverage: Company Name Symbol Year Industry Current Ratio Quick (Acid Test) Ratio Current Cash Debt Coverage Accounts Receivable Turnover Inventory Turnover Asset Turnover 3M co MMM 2017 Diversified Industry 3M Co Net Sales $31,657; Net Income $4,869; Non-controlling $11; Net Income - Controlling $4,858; COGS $16,001; Total Assets $37,987 Last Year Total Assets $32,906; Total Liabilities $26,365; Last Year Total Liabilities $22,563;...
The ability of a company to collect receivables is measured by which ratio?      A. Day's sales...
The ability of a company to collect receivables is measured by which ratio?      A. Day's sales in receivables      B. Inventory turnover ratio C. Current ratio       D. Acid-test ratio The ability of a company to sell inventory is measured by which of the following ratios?      A. Inventory turnover ratio      B. Current ratio C. Day's sales in receivables      D. Acid-test ratio A company's ability to pay liabilities with current assets is measured by which of the following ratios?      A. Inventory turnover ratio     ...
SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate: (a) current ratio, (b) quick/acid-test...
SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate: (a) current ratio, (b) quick/acid-test ratio, (c) Total debt or leverage ratio, (d) Return on Assets, (e) Net Margin, (f) Return on Equity, (g) Asset Turnover, (h) Earnings Retention Ratio SUMMARY BALANCE SHEET ASSETS                                   LIABILITIES & SH EQUITY Cash & Equivalents $2,000    Accounts Payable $6,000 Accounts Receivable 7,000    Notes Payable         4,000 Inventory                  5,000     Current Liabilities $10,000 Current Assets      $14,000      Prepaid Expense $2,000         Long-term Debt   $9,000      P, P & E (net)     $20,000        SH Equity           $17,000           Total Assets        $36,000       Total Liab & SH Eq...
Pepper Company provided the incomplete financial statements shown below as well as the following additional information:...
Pepper Company provided the incomplete financial statements shown below as well as the following additional information: All sales during the year were on account. There was no change in the number of shares of common stock outstanding during the year. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. Selected balances at the beginning of the current year were: Accounts receivable $ 330,000 Inventory $ 440,000...
The following information shows an industries' current financial standing: Annual Sales $1,200,000.00 Current Liabilities $ 375,000.00...
The following information shows an industries' current financial standing: Annual Sales $1,200,000.00 Current Liabilities $ 375,000.00 Days Sales Outstanding 20.00 Inventory Turnover 2.40 Current Ratio 0.60 How much cash does industry have? Calculate the Inventory. Calculate the accounts receivable of industry.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT