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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 |
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