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Completing requirement 3.

Completing requirement 3.

FINANCIAL ACCOUNTING
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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Completing requirement 3.

There are three choice for the first black: 

a. Converting some accounts receivables to long-term note receivable

b. Just continuing to use of credit cards

c. Offering discount for early payments

There are three choices for the second blank:

a. Decreasing penalties for late payment

b. Emphasising credit cards for sales 

c. 

Compute these ratios for 2020 and 2019: 1 Comparative financial data a. Current ratio b. Acid-test ratio C. Days' sales in receivables Write a memo explaining to top management which ratio value - Recommend two ways for Sunset Pools to improve cash flow (in millions) er the overall trend is favourable or 2020 2019 2018 equirement 1a. Compute the current ratios for 2020 and 2019. Balance sheet 2020 2019 Current assets: Current ratio 2.01 1.74 Cash 82 $ 62 $ 66 Short-term investments 130 168 113 Requirement 1b. Compute the acid-test ratios for 2020 and 2019, Receivables, net of allowance for 2020 2019 uncollectible accounts of S27, Acid-test ratio 1.15 0.96 S21, and $15, respectively 246 249 271 final answer to the nearest day.) Requirement 1c. Compute the days' sales in receivables ratios for Inventories 334 370 363 2020 2019 11 23 28 Prepaid expenses 841 Days' sales in receivables 31 days 35 days 803 S 872 $ Total current assets 400 $ 501 $ 413 State whether the overall trend is favoura Total current liabilities Requirement 2. Write a memo explaining to top management whic Income statement MEMORANDUM $ 2,896 $ 2,721 $ 2,209 Net sales TO: Top management of Gold Pools Inc. FROM: Student Name Print Done RE: Changes in ratio values from 2019 to 2020 is favourable for the company because it shows that the company has improved its ability to meet its financial obligations improved from 2019 to 2020. This trend The three ratios and/or Requirement 3. Recommend two ways for Gold Pools to improve cash flow from receivables. Gold Pools can improve cash flow from receivables by Clear All Click to select your answer(s) and then click Check Answer. File Explor... W Word PDo Home... All parts showing Chapter 4... Course H... Type here to search %24 %24
Transcribed Image Text:Compute these ratios for 2020 and 2019: 1 Comparative financial data a. Current ratio b. Acid-test ratio C. Days' sales in receivables Write a memo explaining to top management which ratio value - Recommend two ways for Sunset Pools to improve cash flow (in millions) er the overall trend is favourable or 2020 2019 2018 equirement 1a. Compute the current ratios for 2020 and 2019. Balance sheet 2020 2019 Current assets: Current ratio 2.01 1.74 Cash 82 $ 62 $ 66 Short-term investments 130 168 113 Requirement 1b. Compute the acid-test ratios for 2020 and 2019, Receivables, net of allowance for 2020 2019 uncollectible accounts of S27, Acid-test ratio 1.15 0.96 S21, and $15, respectively 246 249 271 final answer to the nearest day.) Requirement 1c. Compute the days' sales in receivables ratios for Inventories 334 370 363 2020 2019 11 23 28 Prepaid expenses 841 Days' sales in receivables 31 days 35 days 803 S 872 $ Total current assets 400 $ 501 $ 413 State whether the overall trend is favoura Total current liabilities Requirement 2. Write a memo explaining to top management whic Income statement MEMORANDUM $ 2,896 $ 2,721 $ 2,209 Net sales TO: Top management of Gold Pools Inc. FROM: Student Name Print Done RE: Changes in ratio values from 2019 to 2020 is favourable for the company because it shows that the company has improved its ability to meet its financial obligations improved from 2019 to 2020. This trend The three ratios and/or Requirement 3. Recommend two ways for Gold Pools to improve cash flow from receivables. Gold Pools can improve cash flow from receivables by Clear All Click to select your answer(s) and then click Check Answer. File Explor... W Word PDo Home... All parts showing Chapter 4... Course H... Type here to search %24 %24
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