Mandesa, Inc., has current liabilities of $9,600,000, a current ratio of 1.9 times, inventory turnover of 11 times, average collection period of 30 days, and credit sales of $63,999,994.
Calculate the value of cash and marketable securities (Use 365 days a year)
Current Ratio and Turnover ratios:
Current ratio is given as the current assets divided by the current liabilities of the company. Inventory turnover is given as the cost of goods sold divided by the average inventory. Average Collection period is given as 365 multiplied by receivables divided by the sales.
Answer and Explanation:
Total current assets = 1.9 x 9600000 = $18,240,000.00
Since cost of goods sold is not given, Inventory turnover is calculated on sales only
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from Introduction to Business: Homework Help ResourceChapter 22 / Lesson 26