Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed): (Click the icon to view the financial data.) Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) = Acid-test ratio Data table Accounts Payable Cash Merchandise Inventory: March 31, 2024 March 31, 2023 Net Credit Sales Revenue Long-term Assets Long-term Liabilities $ 330,000 358,800 270,000 240,000 3,285,000 430,000 90,000 Print Accounts Receivable, net: March 31, 2024 March 31, 2023 Cost of Goods Sold Short-term Investments Other Current Assets Other Current Liabilities Done $ 240,000 120,000 1,150,000 150,000 100,000 190,000
Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed): (Click the icon to view the financial data.) Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) = Acid-test ratio Data table Accounts Payable Cash Merchandise Inventory: March 31, 2024 March 31, 2023 Net Credit Sales Revenue Long-term Assets Long-term Liabilities $ 330,000 358,800 270,000 240,000 3,285,000 430,000 90,000 Print Accounts Receivable, net: March 31, 2024 March 31, 2023 Cost of Goods Sold Short-term Investments Other Current Assets Other Current Liabilities Done $ 240,000 120,000 1,150,000 150,000 100,000 190,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed):
(Click the icon to view the financial data.)
Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole
number.) (Ignore leap-years, using a 365-day where needed.)
C
(a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. = Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.)
Acid-test ratio
Data table
Accounts Payable
Cash
Merchandise Inventory:
March 31, 2024
March 31, 2023
Net Credit Sales Revenue
Long-term Assets
Long-term Liabilities
$
330,000
358,800
270,000
240,000
3,285,000
430,000
90,000
Print
Accounts Receivable, net:
March 31, 2024
March 31, 2023
Cost of Goods Sold
Short-term Investments
Other Current Assets
Other Current Liabilities
Done
$
240,000
120,000
1,150,000
150,000
100,000
190,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1727f54-9a92-4026-88f6-47d4bc10ba3e%2F1b24e408-f699-45d4-92e1-1b5bb4929227%2Ft9tkeea_processed.png&w=3840&q=75)
Transcribed Image Text:Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed):
(Click the icon to view the financial data.)
Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole
number.) (Ignore leap-years, using a 365-day where needed.)
C
(a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. = Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.)
Acid-test ratio
Data table
Accounts Payable
Cash
Merchandise Inventory:
March 31, 2024
March 31, 2023
Net Credit Sales Revenue
Long-term Assets
Long-term Liabilities
$
330,000
358,800
270,000
240,000
3,285,000
430,000
90,000
Print
Accounts Receivable, net:
March 31, 2024
March 31, 2023
Cost of Goods Sold
Short-term Investments
Other Current Assets
Other Current Liabilities
Done
$
240,000
120,000
1,150,000
150,000
100,000
190,000
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