Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the information in the table, what is the company's inventory days? Assets: Cash and marketable securities $600,000 Accounts receivable $900,000 Inventories $1,500,000 Prepaid

Based on the information in the table, what is the company's inventory days?

Assets:

Cash and marketable securities $600,000
Accounts receivable $900,000
Inventories $1,500,000
Prepaid expenses $75,000
Total current assets

$3,075,000

Fixed assets $8,000,000
Less: accumulated depreciation ($2,075,000)
Net fixed assets

$5,925,000

Total assets

$9,000,000

Liabilities:

Accounts payable

$800,000

Notes payable

$700,000

Accrued taxes

$50,000

Total current liabilities

$1,550,000

Long-term debt

$2,500,000

Owner's equity (1 million shares of common stock outstanding)

$4,950,000

Total Liabilities and owner's equity

$9,000,000

Net sales (all credit)

$10,000,000

Less: Cost of goods sold

($3,000,000)

Selling and administrative expense

($2,000,000)

Depreciation expense

($250,000)

Interest expense

($200,000)

Earnings before taxes

$4,550,000

Income taxes

($1,820,000)

Net income

$2,730,000

Group of answer choices

183

227

176

63

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

4th Edition

1492559733, 978-1492559733

More Books

Students also viewed these Finance questions