Given the Following Information, Determine Taylor Company's Cash Balance

question 89

Multiple Choice

Given the following information, determine Taylor Company's cash balance. Sales = $10,000,000 (all on credit)
Current ratio = 3.0
Current liabilities = $800,000
Average collection period = 36.5 days (Assume 365 days/year)
Quick ratio = 1.50
Current assets = cash + accounts receivable + inventory

• A) $200,000
• B) $1,400,000
• C) $2,400,000
• D) $500,000

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Definitions:

Access Capital

The ability of a business or individual to obtain funds or resources needed for investment purposes.

Innovative Ideas

Novel and creative thoughts or concepts that have the potential to bring about change or solve problems.

First-mover Advantage

The competitive advantage gained by the initial significant occupant of a market segment.

Niche

A specialized segment of the market for a particular kind of product or service.