Question:

Information Given:

Balance Sheet

Cash 100,000

Property and Equipment 2,000,000

Income Statement

Room Sales 1,500,000

Food sales 500,000

Cost of food sold 150,000

Net Income 200,000

Ratios

Current ratio 1.4

Food inventory turnover 12 times

average collection period 20 days

solvency ratio 2.5

Assumptions:

The balance sheet amounts are the same at the beginning and end of the year

All sales are credit sales

A year has 365 Days

Current assets consist of cash, food inventory, and accounts receivable

Cash equals 100,00

Total Assets consist of current assets and property and equipment

My Questions i need help with from this information:

1. How do I Calculate the amount of accounts receivable?
2. How do I Calculate the amount of food inventory?