Annual Sales and DSO

Question

Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?

Answer 1

Question

Chapter 2, Problem 12PROB

Summary Introduction

To determine: Annual Sales and DSO

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?

Last year, Jumpin’ Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT’s annual sales and DSO? Please answer vertically

Last year Delightful Desserts had a quick ratio of 2.2, a current ratio of 5.0, an inventory turnover of 8, total current assets of $285,000, and cash and equivalents of $36,000. If the cost of goods sold equaled 80 percent of sales, what were Bailey's annual sales and days' sales outstanding (DSO)? Assume there are 360 days in a year. Round your answer for annual sales to the nearest dollar and answer for DSO to one decimal place. Annual sales: $ DSO: