# Crockett Electronics has a quick ratio of 2.00x, \$26,775 in cash, \$14,875 in accounts receivable, some inventory, total current assets of \$59,500, and total current liabilities of \$20,825. The company reported annual sales of \$400,000 in the most recent annual report.Over the past year, how often did Crockett Electronics sell and replace its inventory?

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Crockett Electronics has a quick ratio of 2.00x, \$26,775 in cash, \$14,875 in accounts receivable, some inventory, total current assets of \$59,500, and total current liabilities of \$20,825. The company reported annual sales of \$400,000 in the most recent annual report.

Over the past year, how often did Crockett Electronics sell and replace its inventory?

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Step 1

Quick ratio of the firm is 2.00x , current assets is \$59,500 and current liabilities is \$20825. Therefore, inventory of the firm can be calculated as below: Step 2

Inventory turnover helps in determining the number of times inventory is sold and replaced in each period. It is calculated as cost of goods sold divided by inventory; however, it can also give an approximate value when sales is divided by inve...

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