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

question 104

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

---

Definitions:

Obligated to Try

A duty or an agreement to make a good faith effort to achieve a stipulated outcome or perform a certain task.

Consequential Damages

Damages that arise not directly from a breach of contract but as a foreseeable result of the breach, such as lost profits or additional operational costs.

Prima Facie

A term from Latin meaning "on its face" or "at first sight"; in legal contexts, it refers to evidence that, unless rebutted, would be sufficient to prove a particular proposition or fact.

Consumer Goods

Items that are bought for personal or household use rather than for manufacturing or reselling purposes.