Question

A firm's quick ratio is 1.4; its current ratio is 3; an inventory turnover of 6X; and total current assets of $810,000. Cash and marketable sesurities amount to $120,000.

What is the annual sales for the company? What is DSO?

Answer #1

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.

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?

a firm's current ratio is 1.4 and its quick ratio is 1.0. If its
current liabilities are $10,400, what are its inventories?

Company A has a current ratio of 2.0 and its quick ratio is 1.6.
The company has $5 million in current liabilities. The company’s
inventory turnover ratio is 5. The company wants to improve its
inventory turnover ratio so that it is equal to the industry
average of 6.2, without changing its sales. Assume that the company
can do this, and that the company uses the freed-up cash from the
decline in inventory to reduce its accounts payable. What would...

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.
$

Chastain Corporation is trying to determine the effect of its
inventory turnover ratio and days sales outstanding (DSO) on its
cash conversion cycle. Chastain's 2016 sales (all on credit) were
$290,000; its cost of goods sold is 80% of sales; and it earned a
net profit of 5%, or $14,500. It turned over its inventory 6 times
during the year, and its DSO was 30.5 days. The firm had fixed
assets totaling $45,000. Chastain's payables deferral period is 45
days....

Long-term debt ratio
0.1
Times interest earned
8.0
Current ratio
1.4
Quick ratio
1.0
Cash ratio
0.4
Inventory turnover
4.0
Average collection period
73
days
Use the above information from the tables to work out the
following missing entries, and then calculate the company’s return
on equity. Note: Turnover and the average collection period are
calculated using start-of-year, not average, values. (Enter
your answers in millions. Round intermediate calculations and final
answers to 2 decimal places.)
Long-term debt ratio
0.1...

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. $

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.

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.

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