Mandesa, Inc., has current liabilities of $9,800,000, current ratio of 2.0 times, inventory turnover of 12 times, average collection period of 30 days, and credit sales of $63,999,992. |
Calculate the value of cash and marketable securities. (Use 365 days a year. Round your intermediate calculations and final answer to the nearest dollar amount.) |
Cash and marketable securities |
$ |
Days of receivables = 365 / receivables turnover
30 = 365 / receivables turnover
receivables turnover = 12.17
Receivables turnover = credit sales / receivables
12.17 = 63,999,992 / receivables
receivables = 5,258,832.539
inventory turnover = Sales / inventory
12 = 63,999,992 / inventory
inventory = 5,333,332.667
Current assets = Current ratio * current liability
Current assets = 2 * 9,800,000
Current assets = 19,600,000
Cash and marketable securities = 19,600,000 - 5,333,332.667 - 5,258,832.539
Cash and marketable securities = $9,007,834.79
Get Answers For Free
Most questions answered within 1 hours.