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W.F. Bailey Company Ratio Analysis

W.F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 5 times, total current assets of $810,000, and cash and marketable securities of $120,000 in 2007. If the cost of goods sold equaled 86 percent of sales, what were Baileys annual sales and its DSO (days sales outstanding).

Solution Summary

The solution calculates the annual sales and days sales outstanding using ratio analysis.