ABC Corporation has a debt/equity ratio of 0.4, total debt of $400,000, sales of $50,000, cost of goods sold of $30,000, inventory of $10,000, and account receivable of $20,000. It is known that all sales are credit sales. a) What is the value of the total assets in ABC Corporation? b) Calculate the inventory turnover and thus the days' sales in inventory.
ABC Corporation has a debt/equity ratio of 0.4, total debt of $400,000, sales of $50,000, cost of goods sold of $30,000, inventory of $10,000, and account receivable of $20,000. It is known that all sales are credit sales. a) What is the value of the total assets in ABC Corporation? b) Calculate the inventory turnover and thus the days' sales in inventory.
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 6MCQ
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