Question

The Kretovich Company had a quick ratio of 1.1, a current ratio of 2.5, a days' sales outstanding of 36.5 days (based on a 365-day year), total current assets of $512,500, and cash and marketable securities of $110,000. What were Kretovich's annual sales? Do not round intermediate calculations. Round your answer to the nearest dollar.

Answer #1

current ratio=current assets/current liabilities

current liabilities=(512500/2.5)=$205000

quick ratio=(Current assets-inventory)/current liabilities

(1.1*205000)=512500-inventory

inventory=512500-225500

=$287000

Total current assets=inventory+cash and marketable securities+accounts receivable

accounts receivable=(512500-110,000-287000)=$115500

Days sales outstanding=(accounts receivable/Annual sales)*365 days

36.5=(115500/Annual sales)*365

Annual sales=(115500*365)/36.5

=**$1,155,000.**

The Kretovich Company had a quick ratio of 0.9, a current ratio
of 3.0, a days' sales outstanding of 36.5 days (based on a 365-day
year), total current assets of $900,000, and cash and marketable
securities of $125,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
dollar.

Comprehensive Ratio Calculations
The Kretovich Company had a quick ratio of 1.5, a current ratio
of 2.5, a day's sales outstanding of 32.0 days (based on a 365-day
year), total current assets of $510,000, and cash and marketable
securities of $110,000.
What were Kretovich's annual sales? Round your answer to the
nearest cent. $

Problem 7-12
Comprehensive Ratio Calculations
The Kretovich Company had a quick ratio of 1.5, a current ratio
of 2.5, a days sales outstanding of 33.0 days (based on a 365-day
year), total current assets of $760,000, and cash and marketable
securities of $115,000. What were Kretovich's annual sales? Round
your answer to the nearest cent. Do not round intermediate
calculations.
$

Problem 3-12
Comprehensive Ratio Calculations
The Kretovich Company had a quick ratio of 0.8, a current ratio
of 2.5, a days sales outstanding of 33.0 days (based on a 365-day
year), total current assets of $840,000, and cash and marketable
securities of $90,000.
What were Kretovich's annual sales? Round your answer to the
nearest cent.
$

Comprehensive Ratio Calculations. Anvil Metal Works (AMW) had a
quick ratio of 1.1, a current ratio of 2.5, an inventory turnover
of 4 times, gross profit margin of 10%, total current assets of
$810,000, and cash and marketable securities of $120,000. What were
AMW's annual sales and its DSO? Assume a 365-day year.

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
$

Mandesa, Inc. has current liabilities of $8,400,000, current
ratio of 1.9 times, inventory turnover of 11 times, average
collection period of 34 days, and credit sales of $64,400,000.
Calculate the value of cash and marketable securities.
(Use 365 days a year. Do not round your intermediate
calculations. Round your final answer to the nearest dollar
amount.)

Mandesa, Inc. has current liabilities of $8,800,000, current
ratio of 1.8 times, inventory turnover of 10 times, average
collection period of 38 days, and credit sales of $64,800,000.
Calculate the value of cash and marketable securities.
(Use 365 days a year. Do not round your intermediate
calculations. Round your final answer to the nearest dollar
amount.)

Current Position Analysis
The following items are reported on a company's balance
sheet:
Cash
$334,100
Marketable securities
261,000
Accounts receivable (net)
312,900
Inventory
136,200
Accounts payable
454,000
Determine (a) the current ratio and (b) the quick ratio. Round
to one decimal place.
a. Current ratio
b. Quick ratio
Accounts Receivable Analysis
A company reports the following:
Sales
$1,931,580
Average accounts receivable (net)
71,540
Determine (a) the accounts receivable turnover and (b) the
number of days' sales in receivables. Round interim...

A company has the following inputs:
Current ratio = 3.0
Quick ratio = 1.50
Current liabilities = $800,000
Sales = $10 million (100% on credit)
Avg collection period = 36.5 days
Note: the only current assets that the company has on the books
include cash, AR, and inventory

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