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Assume ABC Corporation has Cash, A/R, and Inventory as its only Current Assets and PPE as the only Long-Term Asset. Given the following information calculate
Assume ABC Corporation has Cash, A/R, and Inventory as its only Current Assets and PPE as the only Long-Term Asset. Given the following information calculate the PPE for ABC Corporation.
Collection period = 40 days, Days sales in cash = 15 days, Current ratio = 2.4, inventory turnover = 3 times, liabilities to assets = 80%, payables period = 45 days, cash = $400,000, inventory = $800,000, total assets = $4,500,000.
Please show work so that I can learn how to interpret all of this information, thank you!
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