Taft Technologies has the following relationships: Annual sales.............................................................$1,200,000.00 Current liabilities.......................................................$ 375,000.00 Days sales outstanding (DSO) (365-day year)
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Annual sales.............................................................$1,200,000.00
Current liabilities.......................................................$ 375,000.00
Days sales outstanding (DSO) (365-day year) .....................40.00
Inventory turnover ratio..........................................................4.80
Current ratio............................................................................1.20
The company's current assets consist of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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