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
current ratio=current assets /current liabilities
Quick ratio=(current assets-inventory)/current liabilities
Total current assets=inventory+cash and marketable securities+accounts receivable
Days sales outstanding=(accounts receivable/Annual sales)*365 days
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