Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash $162 $100 Accounts receivable, net Inventory Prepaid expenses 192 192 142 132 92 92 Total current assets $588 $516 Current liabilities: Accounts payable Accrued liabilities $202 $182 32 32 Notes payable, short term 92 82 Total current liabilities $326 $296 Sales on account during the year totaled $1,210 thousand. Cost of goods sold was $810 thousand. Requlred: Compute the following for Year 2: a. Working capital. (Enter your answer In thousands of dollars, I.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts recelvable turnover. (Round your answer to 2 decimal places.) e. Average collection perlod. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your fina answer to 1 decimal place.) f. Inventory turnover. (Round your answer to 2 decimal places.) g. Average sale period. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your final ans to 1 decimal place.) a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover e. Average collection period days f. Inventory turnover g. Average sale period days
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash $162 $100 Accounts receivable, net Inventory Prepaid expenses 192 192 142 132 92 92 Total current assets $588 $516 Current liabilities: Accounts payable Accrued liabilities $202 $182 32 32 Notes payable, short term 92 82 Total current liabilities $326 $296 Sales on account during the year totaled $1,210 thousand. Cost of goods sold was $810 thousand. Requlred: Compute the following for Year 2: a. Working capital. (Enter your answer In thousands of dollars, I.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts recelvable turnover. (Round your answer to 2 decimal places.) e. Average collection perlod. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your fina answer to 1 decimal place.) f. Inventory turnover. (Round your answer to 2 decimal places.) g. Average sale period. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your final ans to 1 decimal place.) a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover e. Average collection period days f. Inventory turnover g. Average sale period days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below:
Year 2
Year 1
Current assets:
Cash
$162
$100
Accounts receivable, net
Inventory
Prepaid expenses
192
192
142
132
92
92
Total current assets
$588
$516
Current liabilities:
Accounts payable
Accrued liabilities
$202
$182
32
32
Notes payable, short term
92
82
Total current liabilities
$326
$296
Sales on account during the year totaled $1,210 thousand. Cost of goods sold was $810 thousand.
Requlred:
Compute the following for Year 2:
a. Working capital. (Enter your answer In thousands of dollars, I.e., 100,000 should be entered as 100.)
b. Current ratio. (Round your answer to 2 decimal places.)
C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)
d. Accounts recelvable turnover. (Round your answer to 2 decimal places.)
e. Average collection perlod. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your final
answer to 1 decimal place.)
f. Inventory turnover. (Round your answer to 2 decimal places.)
g. Average sale period. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your final answer
to 1 decimal place.)
a. Working capital
b. Current ratio
c. Acid-test ratio
d. Accounts receivable turnover
e. Average collection period
days
f. Inventory turnover
g. Average sale period
days
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