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Yuliya22 [10]
2 years ago
12

AAA's inventory turnover ratio is 20.00 based on sales of $28,400,000. The firm's current ratio equals 4.16 with current liabili

ties equal to $820,000. If the firm's cash and marketable securities equal $657,096, what is the firm's days sales outstanding? (Round your answer to two decimal places.)
A) 15.66
B) 35.40
C) 43.84
D) 25.59
E) 17.15
Business
1 answer:
marissa [1.9K]2 years ago
4 0

Answer:

= 17.15 days (approx)

Explanation:

Given:

inventory turnover ratio = 20

Current ratio = 4.16

Current liabilities = $820,000.

Cash and Marketable securities = $657,096

Net sales = $28,400,000

Per day sale = ?

Calculation:

Current ratio = Current assets / current Liabilities

              4.16 = Current assets / $820,000

4.16 x $820,000 = Current assets

$3,411,200 = Current assets

Inventory turnover ratio = Net sales / Average Inventory

                                  20 =  $28,400,000 / Inventory

        $28,400,000 / 20 = Inventory

                   $1,420,000 = Inventory

Average Receivable =  current assets - Cash and Marketable securities -Inventories

                   = $3,411,200 - $657,096 - $1,420,000

Average Receivable = $1,334,104

Outstanding daily sales = (Average receivables / Net sales )Number of days in a year

= $1,334,104 / $28,400,000)365

= 17.15 days (approx)

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Answer:

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Apr-06    Merchandise Inventory                    $900

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Apr-08    Accounts Payable                             $3,000

                        Merchandise Inventory                              $3,000

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Answer:

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Explanation:

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Buy:

Total cost= $100,000

<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>

Total variable production cost= 45,000 + 30,000 + (98,000*0.3)

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2 years ago
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Answer:

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Explanation:

                                                                Actual           Budgeted

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