Question
In: Finance
Highly Suspect Corp. has current liabilities of $419,000, aquick ratio of 1.40, inventory turnover of...
Highly Suspect Corp. has current liabilities of $419,000, a quick ratio of 1.40, inventory turnover of 4.30, and a current ratio of 3.70. What is the cost of goods sold for the company?
Solutions
Expert Solution
Quick Ratio = Quick Assets / Current Liabilities
1.40 = Quick Assets / 419,000
Quick Assets = 419,000 * 1.40
Quick Assets = 419,000 * 1.40
Quick Assets = $ 586,600
Current Ratio = Current Assets / Current Liabilities
3.70 = Current Assets / 419,000
Current Assets = 419,000 * 3.70
Current Assets = 1,550,300
Inventory = Current Assets - Quick Assets
= 1,550,300 - 586,600
= 963,700
Inventory turnover ratio = Cost of good sold / inventory
4.30 = Cost of good sold / 963,700
Cost of good sold = 963,700 * 4.30
= $ 4,143,910 answer
jeff jeffy answered 2 years agoRelated Solutions
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Compute Financial ratios Current Ratio, Quick Ratio, Reeivables turnover, Inventory turnover, Profit margin, Asset turnover, Return...
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Current Ratio, Quick Ratio, Reeivables turnover, Inventory
turnover, Profit margin, Asset turnover, Return on assets, Return
on equity, Earnings per Share,
Price-earnings, Cash Dicidend payot, Debt Ratio, Debt-to-Equity,
and Times Interest earned
Orange
Company
Income Statement
For the Years Ended December
31
2013
2012
Net sales (all on
account)
$
600,000
$
520,000
Expenses:
Cost of Goods Sold
$
415,000
$
354,000
Selling and
administrative
$
120,800
$
114,600
Interest Expense
$
7,800
$
6,000
Income Tax...
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application of a firm or to reject it. Please explain the role of
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Current ratio:
Inventory Turnover Ratio:
Gross Profit–Sales Ratio:
Interest Coverage Ratio:
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application of a firm or to reject it. Please explain the role of
each ratio in shaping the lender decision.
Current ratio:
Inventory Turnover Ratio:
Gross Profit–Sales Ratio:
Interest Coverage Ratio:
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COMPANY.
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