Brutal Q balance, accounts, following, only, 2004

andytrader

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.

sdada

Thanks for the question - I liked this one.

leadcfa

Yeah, definitely a fun question. Kind of makes me feel like I'm actually starting to know some stuff.

bluejazzy

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.

sgupta0827

i'm getting B

900,000 is the COGS number that i get.
Then X-900,000 = 0.25X
X= 1,200,000