A Club has food sales of $4,000,000 and a food cost of 40%. The club's current ratio is 2, its food inventory turnover ratio is 16, and its average collection period is 45 days. Assume a year has 360 days. Given: Cash $150,000 Accrued expenses $100,000 Compute: 1. account receivable 2. food inventory 3. total current assets

A Club has food sales of $4,000,000 and a food cost of 40%. The club's current ratio is 2, its food inventory turnover ratio is 16, and its average collection period is 45 days. Assume a year has 360 days. Given: Cash $150,000 Accrued expenses $100,000 Compute: 1. account receivable 2. food inventory 3. total current assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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