Evaluate the liquidity position of Beardom Gym Center. The following data are provided: Cash P150,000 70,000 Trading Investments Receivables: Jan. 1 Dec. 31 158,000 225,000 Merchandise Inventory Jan. 1 Dec. 31 Current Liabilities Cost of Goods Sold Credit Sales Required: Calculate the following: 250,000 185.000 230,000 2,750,000| 4,800,000 A.
Evaluate the liquidity position of Beardom Gym Center. The following data are provided: Cash P150,000 70,000 Trading Investments Receivables: Jan. 1 Dec. 31 158,000 225,000 Merchandise Inventory Jan. 1 Dec. 31 Current Liabilities Cost of Goods Sold Credit Sales Required: Calculate the following: 250,000 185.000 230,000 2,750,000| 4,800,000 A.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1SEB
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![Evaluate the liquidity position of Beardom Gym Center. The following data are
provided:
Cash
P150,000
70,000
Trading Investments
Receivables:
Jan. 1
Dec. 31
Merchandise Inventory
158.000
225.000
Jan. 1
250.000
185.000
230.000
2,750,000|
4,800,000
Dec. 31
Current Liabilities
Cost of Goods Sold
Credit Sales
Required: Calculate the following:
А.
1. Working Capital(Use ending balances)
2. Current Ratio(Use ending balances)
3. Quick Ratio(Use ending balances)
B. Is Beardom doing a good job in managing inventory and receivables? Explain.
C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1,
analyze the liquidity performance of Beardom versus the industry.
4. Inventory turnover
5. Receivable turnover
6. Average age of receivables](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd78cdd-3fe9-4047-ae44-a68b3b6fb342%2F4cdc13d4-67f4-41ce-9b6c-e494c0d425e0%2Fe0ir0cp_processed.png&w=3840&q=75)
Transcribed Image Text:Evaluate the liquidity position of Beardom Gym Center. The following data are
provided:
Cash
P150,000
70,000
Trading Investments
Receivables:
Jan. 1
Dec. 31
Merchandise Inventory
158.000
225.000
Jan. 1
250.000
185.000
230.000
2,750,000|
4,800,000
Dec. 31
Current Liabilities
Cost of Goods Sold
Credit Sales
Required: Calculate the following:
А.
1. Working Capital(Use ending balances)
2. Current Ratio(Use ending balances)
3. Quick Ratio(Use ending balances)
B. Is Beardom doing a good job in managing inventory and receivables? Explain.
C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1,
analyze the liquidity performance of Beardom versus the industry.
4. Inventory turnover
5. Receivable turnover
6. Average age of receivables
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