Question
The following information are provided for the following Catering company Sales $3 millions Cash $150 000 Inventory $850 000 Current liabilities $700 000 Asset turnover
The following information are provided for the following Catering company
Sales $3 millions
Cash $150 000
Inventory $850 000
Current liabilities $700 000
Asset turnover 1.24 times
Current ratio 2.5 times
Debt to asset ratio 40%
Receivable turnover 6 times
Current assets are composed of cash, marketable securities, account receivable and inventory.
Calculate the following balance sheet items.
- Account receivable
- Marketable securities
- Fixed assets
- Long term debt
- Working capital
- Quick ratio
Explain for each how you arrived to your answer
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Public Finance
Authors: Harvey S. Rosen
3rd Edition
0256083762, 978-0256083767
