Question:
We are given the following information for the Pettit Corporation.
Sales (credit) $3,000,000
Cash 150,000
Inventory 850,000
Current Liabilities 700,000
Asset turnover 1.25 times
current ratio 2.20 times
Debt-to-assets ratio 40%
Receivables turnover 6 times
Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items.
a. Accounts receivable.
b. Marketable securities.
c. Fixed assets.
d. Long-term debt.