Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?
Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 14P
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Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,000. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?
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