Compute Chavez Company's current ratio using the following information: Accounts receivable $18,000 Long-term notes payable 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned service revenue 3,000

Compute Chavez Company's current ratio using the following information: Accounts receivable $18,000 Long-term notes payable 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned service revenue 3,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

Financial accounting question

Compute Chavez Company's current ratio using the following
information:
Accounts receivable $18,000 Long-term notes payable
21,000
Accounts payable
11,000
Office supplies
2,800
Buildings
45,000 Prepaid insurance
3,560
Cash
7,000
Unearned service revenue 3,000

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Compute Chavez Company’s current ratio using the following information. Accounts receivable $18,000 Long-term notes payable . $21,000Accounts payable 11,000 Office supplies . 2,800Buildings . . . . . . . . . . . . . . . . . . . . . 45,000 Prepaid insurance 3,560Cash 7,000 Unearned services revenue . 3,000
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
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The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁
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