Calculate river valley manufacturing acid test ratio? River Valley Manufacturing has the following account balances:.Cash: $35,000⚫•Marketable Securities: $18,000⚫ Accounts Receivable: $42,000Inventory: $75,000••Prepaid Insurance: $7,000•⚫ Short-term Notes Payable: $45,000.Accounts Payable: $35,000Accrued Wages: $20,000Calculate River Valley Manufacturing's acid-test ratio:

Step 1: Definition of Acid-Test RatioThe Acid-Test Ratio, also known as the Quick Ratio, measures a…

Answered: River Valley Manufacturing has the…

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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Abbot Communications has annual credit sales of $1,800,000 and accounts receivable of $190,000. What is the average collection period? Thompson Wood products have credit sales of $2,160,000 and accounts receivable of $288,000. Compute the value of the average collection period. Lone Star Petroleum Co. has annual credit sales of $2,880,000 and accounts receivable of $272,000. Compute the value of the average collection period. Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Darla’s Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in 2010. Assume a 360 day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales time the average…
Hanshaben
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Please do your own work, don't copy from the internet Overall ratio analysis The balance sheet for Stud Clothiers is shown next. Sales for the year were $2,400,000, with 90 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity Cash…………………… $ 60,000 Accounts payable…………….. $ 220,000 Accounts receivable…... 240,000 Accrued taxes………………… 30,000 Inventory……………… 350,000 Bonds payable(long-term)…………………… 150,000 Plant and equipment…... 410,000 Common stock……………….. 80,000 Paid-in capital………………… 200,000 Retained earnings…………….. 380,000 Total assets………... $1,060,000 Total liabilities and equity… $1,060,000 Compute the following ratios: a. Current ratio. b. Quick ratio. Debt-to-total-assets ratio. Asset turnover. Average collection period.
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The cost of product X is 30 percent of its selling price, and the carrying cost is 8 percent of selling price. Accounts are paid on average 60 days after sale. Sales per month average P25,000. What is the investment in accounts receivable? choose the letter of the correct answera. P8,000.00b. P9,000.00c. P19,000.00d. P29,000.00e. P39,000.00
Vikrambhai
Solve this following requirements on these general accounting question
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?
Bank Alfatih earned an annual profit amounting to USD1,500,000 through a Mudharaba Mutlaqah deposit account. The profit sharing ratio between the bank and the depositors of the Mudharaba deposit account is (40:60) respectively. The table below contains data on the deposit types that are available, average balance needed, and the weights that are used. Deposit Types Average balance Weights 1 month 300,000 0.5 3 months and less 400,000 0.8 6 months and less 600,000 1 12 months and less 800,000 1.25 Total 2,100,000 Calculate the total depositors’ share from the annual profit. Calculate the weighted average balance for each type of deposits.
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Vikram

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