Question

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

Answer #1

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.

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?

Chiellini Company has a current ratio = 1.6, and a quick ratio
equal to 1.2. The company has $3 million in sales and its current
liabilities are $990,000. The company has $10,000,000 of retained
earnings. What is the company’s inventory turnover ratio?

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...

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.

Oasis Products, Inc. has current liabilities = $9.9 million,
current ratio = 1.90 times, inventory turnover ratio = 12.4 times,
average collection period = 24 days, and sales = $110 million. What
is the value of their cash and marketable securities? (Consider a
365 days a year.)
$16,064,813
$2,706,155
$18,810,000
$8,870,968

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...

Agnes Company reported the following data:
Quick
assets
$55,000
Current assets
150,000
Total
liabilities
300,000
Average net receivables
12,600
Beginning inventory
38,000
Long-term liabilities
200,000
Net
credit sales
126,000
Cost
of goods sold
84,000
Ending
inventory
46,000
What was the average number of days to sell inventory?
182.5
121.7
165.9
202.7

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.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 11 minutes ago

asked 14 minutes ago

asked 26 minutes ago

asked 31 minutes ago

asked 33 minutes ago

asked 34 minutes ago

asked 56 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago