Computing cash on balance sheet


Q1) Taft Technologies has the following relationships:

Annual sales $1,200,000
Current liabilities $375,000
Days sales outstanding (DSO) (360-day year) 40
Inventory Turnover ratio 4.8
Current ratio 1.2

Company's current assets comprise of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?

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Accounting Basics: Computing cash on balance sheet
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