C. Comparative Financial data for the two companies are shown below: Cash Accounts Receivable Inventories Prepaid Expenses Other Assets (net) Current Liabilities Mortgage Payable Owner's Equity Sales (all on credit) Gross Profit rate on Sales Number of Business days, 360 TIKTAK CORP. P67,832 a. Inventory Turnover b. Average age of inventory c. Accounts receivable turnover 84,480 71,280 12,000 353,388 126,694 50,000 412,286 844,800 32.5% METATA CORP. P17,100 27,600 26,496 3,000 173,124 48,392 100,000 98,928 165,600 20% Required: 1. Determine which of the two companies has the more liquid current assets by developing the following ratios: d. Average collection period 2. Determine which of the two companies has the more total liquid assets. 3. Determine which of the two companies is generally more stable.

C. Comparative Financial data for the two companies are shown below: Cash Accounts Receivable Inventories Prepaid Expenses Other Assets (net) Current Liabilities Mortgage Payable Owner's Equity Sales (all on credit) Gross Profit rate on Sales Number of Business days, 360 TIKTAK CORP. P67,832 a. Inventory Turnover b. Average age of inventory c. Accounts receivable turnover 84,480 71,280 12,000 353,388 126,694 50,000 412,286 844,800 32.5% METATA CORP. P17,100 27,600 26,496 3,000 173,124 48,392 100,000 98,928 165,600 20% Required: 1. Determine which of the two companies has the more liquid current assets by developing the following ratios: d. Average collection period 2. Determine which of the two companies has the more total liquid assets. 3. Determine which of the two companies is generally more stable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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