Danny Corporation's total current assets are valued at $233,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information: sales = $225,000; cost of goods sold = $135,000; accounts receivable turnover = 3 times; inventory turnover = 1.5 times.

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The accounts receivable turnover is calculated as sales divided by accounts receivable, so accounts receivable = sales / accounts receivable turnover = $225,000 / 3 = $75,000. The inventory turnover is calculated as cost of goods sold divided by inventory, so inventory = cost of goods sold / inventory turnover = $135,000 / 1.5 = $90,000. Therefore, cash = total current assets - (accounts receivable + inventory) = $233,000 - ($75,000 + $90,000) = $68,000.

Danny Corporation's Total Current Assets Are Valued at $233,000 and Are