UST Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales 75% of total sales Quick ratio 1.25:1 Inventory turnover 5x Average collection period 42 days Working capital P1,120,000 Working days 360 Current ratio 2:1 What is the amount of inventory?

UST Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales 75% of total sales Quick ratio 1.25:1 Inventory turnover 5x Average collection period 42 days Working capital P1,120,000 Working days 360 Current ratio 2:1 What is the amount of 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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