Calculate the following liquidity ratios for 2024 and 2023 receivables turnover and inventar
Calculate the following liquidity ratios for 2024 and 2023 receivables turnover and inventar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(a)
Calculate the following liquidity ratios for 2024 and 2023. Round current ratio and acid-test ratio to 2 decimal places, e.g. 0.75:1,
receivables turnover and inventory turnover to 1 decimal place, eg. 52.7 and collection period, days sales in inventory and operating cycle
to O decimal places, e.g. 125.)
Current ratio
Acid-test ratio
Receivables turnover
Collection period
Inventory turnover
Days sales in inventory
Operating cycle
2024
times
days
times
days
days
2023
#1
#1
times
days
times
days
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0631d62-a16e-43ba-8c96-7d9c09726885%2F974d847a-53d3-4bf9-afd6-259f3c453e2c%2F3lnnqe8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a)
Calculate the following liquidity ratios for 2024 and 2023. Round current ratio and acid-test ratio to 2 decimal places, e.g. 0.75:1,
receivables turnover and inventory turnover to 1 decimal place, eg. 52.7 and collection period, days sales in inventory and operating cycle
to O decimal places, e.g. 125.)
Current ratio
Acid-test ratio
Receivables turnover
Collection period
Inventory turnover
Days sales in inventory
Operating cycle
2024
times
days
times
days
days
2023
#1
#1
times
days
times
days
days
![Blossom Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below.
Current assets
Cash
Short-term investments
Accounts receivable
Inventory
BLOSSOM INC.
Balance Sheet (partial)
December 31 (in millions)
Prepaid expenses
Total current assets
Total current liabilities
Additional information:
(in millions)
Net credit sales
Cost of goods sold
2024
$775
60
676
899
41
$2,451
2024
$1,885
2023
5.329
$90
58
584
522
50
$1,304
2023
$823
$8,255 $3,937
2,646
2022
$60
40
491
574
24
$1,189
$747](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0631d62-a16e-43ba-8c96-7d9c09726885%2F974d847a-53d3-4bf9-afd6-259f3c453e2c%2Frldbegd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Blossom Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below.
Current assets
Cash
Short-term investments
Accounts receivable
Inventory
BLOSSOM INC.
Balance Sheet (partial)
December 31 (in millions)
Prepaid expenses
Total current assets
Total current liabilities
Additional information:
(in millions)
Net credit sales
Cost of goods sold
2024
$775
60
676
899
41
$2,451
2024
$1,885
2023
5.329
$90
58
584
522
50
$1,304
2023
$823
$8,255 $3,937
2,646
2022
$60
40
491
574
24
$1,189
$747
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