Hello tutor provide correct answer this financial accounting question How much cash and marketable securities does Gray Day Computerhave if the firm has a current ratio of 2.5, a quick ratio of 1.2, and currentliabilities of $12,000? Gray's credit sales are $98,000 and its averagecollection period is 40 days. (Assume 365 days per year.)

Step 1: Define Cash and Marketable securitiesThe most liquid asset of the company which can be sold…

Answered: How much cash and marketable securities…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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How much cash and marketable securities does Gray Day Computer have if the firm has a current ratio of 2.5, a quick ratio of 1.2, and current liabilities of $12,000? Gray's credit sales are $98,000 and its average collection period is 40 days. (Assume 365 days per year.)