Johnson Corp. had the following financial results for the fiscal 2004 year:
Current ratio - 2.00
Quick ratio - 1.25
Current liabilities - $100,000
Inventory turnover - 12
Gross profit % - 25
The only current assets are cash, accounts receivable, and inventory. The balance in these accounts has remained constant throughout the year. Johnson’s net sales for 2004 were:
A) $300,000.
B) $1,200,000.
C) $900,000.作者: bluejazzy 时间: 2011-7-11 18:38
Fudge I mean B. Didn't see it said Sales not COGS.
Edited 1 time(s). Last edit at Tuesday, June 2, 2009 at 12:51PM by adehbone.作者: sgupta0827 时间: 2011-7-11 18:38
i'm getting B
900,000 is the COGS number that i get.
Then X-900,000 = 0.25X
X= 1,200,000作者: sdada 时间: 2011-7-11 18:38
Thanks for the question - I liked this one.作者: leadcfa 时间: 2011-7-11 18:38
Yeah, definitely a fun question. Kind of makes me feel like I'm actually starting to know some stuff.
