Question
Tolbotics Inc. has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current
Tolbotics Inc. has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,255. The company reported annual sales of $300,000 in the most recent annual report.
1.) Over the past year, how often did Tolbotics Inc sell and replace its inventory?
a. 13.18x
b. 0.39x
c. 11.98x
d.0.35x
2.) The inventory turnover ratio across companies in the industry is 10.18x. Based on this info, which of the following statements is TRUE for tolbotics inc?
a. Tolbotics is holding less inventory per dollar of sales compared to the industry average.
b. Tolbotics is holding more inventroy per dollar of sales compared to the industry average.
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