Question

**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.

$

Answer #1

current ratio=current assets /current liabilities

current liabilities=(840,000/2.5)=336,000

Quick ratio=(current assets-inventory)/current liabilities

0.8=(840,000-inventory)/336000

inventory=840,000-(0.8*336000)

=$571200

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

840,000=90,000+571200+accounts receivable

accounts receivable=840,000-(90,000+571200)

=$178800

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

33=(178800/Annual sales)*365

Annual sales=(178800*365)/33

=**1,977,636.36(Approx).**

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.
$

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.

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
$

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?

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?

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...

Problem 3-14
Comprehensive Ratio Analysis
The Jimenez Corporation's forecasted 2017 financial statements
follow, along with some industry average ratios.
Jimenez Corporation: Forecasted Balance Sheet as of
December 31, 2017
Assets
Cash
$ 72,000
Accounts receivable
439,000
Inventories
894,000
Total current
assets
$1,405,000
Fixed assets
431,000
Total assets
$1,836,000
Liabilities and
Equity
Accounts payable
$ 332,000
Notes payable
100,000
Accruals
170,000
Total current
liabilities
$ 602,000
Long-term debt
404,290
Common stock
575,000
Retained earnings
254,710
Total liabilities and equity
$1,836,000
Jimenez Corporation: Forecasted Income...

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