posted by Nk on .
You have reviewed the books of Anderson Incorporated and learned the following:
1.) Quick Ratio is 1.4
2.) Current Ratio is 3.1
3.) Inventory Turn-Over is 4.9 times
4.) Current Assets are $820,000
5.) Cash and equivalents are $115,000
Using this information, answer the following two questions:
1.) What are my annual sales?
2.) What is my DSO (Days Sales Outstanding)? (Note: DSO is Accounts Receivable/(Annual Sales/360)) In other words, it is the accounts receivable divided by the average daily sales amount.