Your Current Assets Consist of Cash, Accounts Receivable, and Inventory

Multiple Choice

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?

A) $ 75,000
B) $ 65,000
C) $135,000
D) $ 50,000