Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales Inventory turnover Working capital Current ratio 75% of total sales 5x P1 120 000 2:1 What is the amount of inventory? Quick ratio Average collection period Working days 1.25:1 42 days 360
Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales Inventory turnover Working capital Current ratio 75% of total sales 5x P1 120 000 2:1 What is the amount of inventory? Quick ratio Average collection period Working days 1.25:1 42 days 360
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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![Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and
inventory. Given is the following information:
Credit sales
Inventory turnover
Working capital
Current ratio
75% of total sales
5x
P1 120 000
2:1
What is the amount of inventory?
Quick ratio
Average collection period
Working days
1.25:1
42 days
360](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffec2ab84-52a8-49c3-95e2-460f57506c8a%2F29230b11-2c1f-44ee-9095-1688cc795559%2F5qm6kas_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and
inventory. Given is the following information:
Credit sales
Inventory turnover
Working capital
Current ratio
75% of total sales
5x
P1 120 000
2:1
What is the amount of inventory?
Quick ratio
Average collection period
Working days
1.25:1
42 days
360
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