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…
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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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Vikrambhai
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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?
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Vikram
Using the following information: a. Beginning cash balance on March 1, $78,000. b. Cash receipts from sales, $301,000. c. Cash payments for direct materials, $131,000. d. Cash payments for direct labor, $77,000. e. Cash payments for overhead, $39,000. f. Cash payments for sales commissions, $7,000 g. Cash payments for interest, $100 (1% of beginning loan balance of $10,000) h. Cash repayment of loan, $10,000. Prepare a cash budget for March for Gado Company.

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