W. F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover ratio of 5, total current assets of $810,000, and cash and equivalents of $120,000 in 2009. If the cost of goods sold equaled 86 percent of sales, what were Bailey's annual sales and DSO?

W. F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover ratio of 5, total current assets of $810,000, and cash and equivalents of $120,000 in 2009. If the cost of goods sold equaled 86 percent of sales, what were Bailey's annual sales and DSO?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

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W. F. Bailey Company had a quick ratio of 1.4, a
current ratio of 3.0, an inventory turnover ratio
of 5, total current assets of $810,000, and cash
and equivalents of $120,000 in 2009. If the cost
of goods sold equaled 86 percent of sales, what
were Bailey's annual sales and DSO?

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