1. The current asset of Naruto Inc. comprises only cash, accounts receivables, and inventory. The firm has a current ratio of 2, and a quick ratio of 1.8. The total liabilities of the company are P40,000 of which 50% is current. How much is the cash of Naruto Inc. if the accounts receivable balance shows a balance of P56,000? 2. On January 1, 2022, Watera Inc. has an inventory account has a balance of P450,000. During the year, Watera Inc. purchased P2,950,000 additional merchandise. On December 31, 2022, the inventory was counted and determined to have a balance of P925,000. What is the inventory turnover for 2022?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. The current asset of Naruto Inc. comprises only cash, accounts receivables, and inventory. The firm has a current ratio of 2, and a quick ratio of 1.8. The total liabilities of the company are P40,000 of which 50% is current. How much is the cash of Naruto Inc. if the accounts receivable balance shows a balance of P56,000? 2. On January 1, 2022, Watera Inc. has an inventory account has a balance of P450,000. During the year, Watera Inc. purchased P2,950,000 additional merchandise. On December 31, 2022, the inventory was counted and determined to have a balance of P925,000. What is the inventory turnover for 2022?
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