Problemwf bailey company had a quick ratio of 14 a current, Ask an Expert

Accounting

Problem:

W.F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 5x, total current assets of $810,000, and cash and equivalents of $120,000.

Required:

Question: If the cost of goods sold equaled 86 per cent of sales, what were Bailey's annual sales and DSO?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169461

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