Reference no: EM131785308

Profitability Ratios

Bryce Company manufactures pet supplies. However, Bryce's electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company's year-end accounting records (which included several profitability ratios) was possible. As a result, Bryce's controller, a bright young CPA named Jeanette, must compute various lost financial account balances using the recovered information listed below:

Long-term liabilities	$1,500,000
Ending inventory is the same as beginning inventory.
Gross margin	$2,700,000
Net sales	$8,000,000
Accounts receivable turnover	60
Ending accounts receivable is the same as beginning accounts receivable.
Total liabilities	$1,900,000
Current ratio	4
Cash	$540,000
Quick ratio	3.5
Inventory turnover in days	3.65

Required:

Assume 365 days per year.

1.  Calculate current liabilities.

2.  Calculate current assets.

3.  Calculate average accounts receivable. Round your answer to the nearest whole dollar, if required.

4.  Calculate marketable securities. Round your answer to the nearest whole dollar, if required.

5.  Calculate average inventory.