Ajax Corporation's total current assets are valued at $135,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information:
Sales = $800,000; cost of goods sold = $300,000; accounts receivable turnover = 32 times;
Inventory turnover = 10 times.
A) $70,000
B) $75,000
C) $80,000
D) $85,000
E) $90,000

Question

Quizplus · Accepted Answer

The Answer of Ajax Corporation's total current assets are valued at $135,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information:
Sales = $800,000; cost of goods sold = $300,000; accounts receivable turnover = 32 times;
Inventory turnover = 10 times.
A) $70,000
B) $75,000
C) $80,000
D) $85,000
E) $90,000

Ajax Corporation's Total Current Assets Are Valued at $135,000 and Are