Ajax Corporation's Total Current Assets Are Valued at $135,000 and Are

question 216

Multiple Choice

Ajax Corporation's total current assets are valued at $135,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information: sales = $800,000; cost of goods sold = $300,000; accounts receivable turnover = 32 times; inventory turnover = 10 times.

• A) $70,000
• B) $75,000
• C) $80,000
• D) $85,000
• E) $90,000