Liquidity Analysis The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory Accounts receivable Ending balances: Inventory Accounts receivable Cash Marketable securities (short-term) Prepaid expenses Accounts payable Taxes payable Wages payable Short-term loans payable $200,000 300,000 250,000 400,000 100,000 200,000 50,000 175,000 85,000 90,000 50,000
Liquidity Analysis The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory Accounts receivable Ending balances: Inventory Accounts receivable Cash Marketable securities (short-term) Prepaid expenses Accounts payable Taxes payable Wages payable Short-term loans payable $200,000 300,000 250,000 400,000 100,000 200,000 50,000 175,000 85,000 90,000 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me with all answers I will give upvote thanku
![Liquidity Analysis
The following selected information is taken from the financial statements of Arnn Company for its most recent year of
operations:
Beginning balances:
Inventory
Accounts receivable
Ending balances:
Inventory
Accounts receivable
Cash
$200,000
300,000
250,000
400,000
Compute the inventory turnover in days.
days.
100,000
Marketable securities (short-term)
Prepaid expenses
Accounts payable
Taxes payable
Wages payable
90,000
Short-term loans payable
50,000
During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million.
Required:
200,000
50,000
175,000
85,000
When required, round your answers to two decimal places. Assume 365 days per year.
Compute the current ratio.
Compute the quick or acid-test ratio.
Compute the accounts receivable turnover ratio.
times
Compute the accounts receivable turnover in days.
days
. Compute the inventory turnover ratio.
times](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F763b6b0a-ab7e-4c49-8373-434061f95ee9%2Fd31071a8-ffc3-446a-a1d1-e78dc5485e69%2Fsavkbdl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Liquidity Analysis
The following selected information is taken from the financial statements of Arnn Company for its most recent year of
operations:
Beginning balances:
Inventory
Accounts receivable
Ending balances:
Inventory
Accounts receivable
Cash
$200,000
300,000
250,000
400,000
Compute the inventory turnover in days.
days.
100,000
Marketable securities (short-term)
Prepaid expenses
Accounts payable
Taxes payable
Wages payable
90,000
Short-term loans payable
50,000
During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million.
Required:
200,000
50,000
175,000
85,000
When required, round your answers to two decimal places. Assume 365 days per year.
Compute the current ratio.
Compute the quick or acid-test ratio.
Compute the accounts receivable turnover ratio.
times
Compute the accounts receivable turnover in days.
days
. Compute the inventory turnover ratio.
times
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education