The following information is from Andy's Pharmaceutical Inc.’sfinancial statements:
Sales (all credit) | $245,000 |
Total assets turnover | 0.80 times |
Total debt to total assets | 30.83% |
Fixed asset turnover | 1.1 times |
Current ratio | 4.04 times |
Average collection period | 29.68 days |
Inventory turnover | 7.42 times |
Part A
Using the above listed ratios and data, compute the balance ofthe following accounts. Assume all sales are on credit and a360-day year. Round to the nearest dollar. [Hint: use ratioformulas to derive the requested values. The book presents 13 ratioformulas on pages 60 - 64]. Please show your work.
A) Current assets
B) Average daily credit sales
C) Accounts Receivable
D) Inventory
E) Current liabilities
