Impact of change in credit policy on the debt ratio.
Taft Technologies has the following relationships:
|
Annual sales
|
$1,200,000
|
|
Current liabilities
|
$375,000
|
|
Days sales outstanding (DSO) (360-day year)
|
40
|
|
Inventory Turnover ratio
|
4.8
|
|
Current ratio
|
1.2
|
The company's current assets consist of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?