Question: Profitability Ratios Bryce Company manufactures pet supplies. However, Bryce's electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company's year-end accounting records (which included several profitability ratios) was possible. As a result, Bryce's controller, a bright young CPA named Jeanette, must compute various lost financial account balances using the recovered information listed below:

• Long-term liabilities: $1,500,000

• Ending inventory is the same as beginning inventory

• Gross margin: $3,000,000

• Net sales: $8,000,000

• Accounts receivable turnover: 50

• Ending accounts receivable is the same as beginning accounts receivable

• Total liabilities: $2,000,000

• Current ratio: 2.5

• Cash: $600,000

• Quick ratio: 2.0

• Inventory turnover in days: 3.65 OBJECTIVE

• 3 OBJECTIVE

• 3 OBJECTIVE

• 3 OBJECTIVE

• 5

Required: 1. Calculate current liabilities.

2. Calculate current assets.

3. Calculate average accounts receivable

4. Calculate marketable securities.

5. Calculate average inventory.