**Gardner Clothiers Financial Analysis Exercise**Gardner Clothiers reported the following selected items at March 31, 2024 (last year’s—2023—amounts also given as needed):**Instructions:**Compute Gardner’s:- (a) Acid-test ratio- (b) Accounts receivable turnover ratio- (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 year where needed.**(a) Acid-Test Ratio Calculation:**Compute Gardner’s acid-test ratio. *Round your final answer to two decimal places.**Abbreviations used:*- Avg. = Average- Invest. = Investment- Liab. = Liabilities- Merch. = Merchandise- Receiv. = Receivable- Rev. = RevenueFill in the boxes in the equation provided.**Data Table:**- **Accounts Payable**: $330,000- **Cash**: $358,800- **Merchandise Inventory**: - March 31, 2024: $270,000 - March 31, 2023: $240,000- **Net Credit Sales Revenue**: $3,285,000- **Accounts Receivable, net**: - March 31, 2024: $240,000 - March 31, 2023: $120,000- **Cost of Goods Sold**: $1,150,000- **Short-term Investments**: $150,000- **Long-term Assets**: $430,000- **Other Current Assets**: $100,000- **Long-term Liabilities**: $90,000- **Other Current Liabilities**: $190,000Use the data in the table to perform the calculations required in the exercise.The table includes financial figures used for calculating various financial ratios, crucial for assessing Gardner Clothiers' fiscal health. Use the provided values to complete the tasks.

Acid Test Ratio :— It is the ratio between quick assets and current liabilities. Acid test ratio =…

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

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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