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    The balance of a cash account

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    Your current assets consist of cash, accounts receivable, and inventory. Total current liabilities equal $200,000. The average collection period is 20 days on average daily credit sales of $2,500. The current ratio is 1.3 and the quick ratio is 0.625. What is the balance in the cash account?
    $75,000
    $65,000
    $135,000
    $50,000

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    Solution Preview

    Your current assets consist of cash, accounts receivable, and inventory. Total current liabilities equal $200,000. The average collection period is 20 days on ...

    Solution Summary

    The balance of a cash account is examined.

    $2.19

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