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Sandhill Co. follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Sandhill for the year ended December 31, 2022: Cash Accounts receivable Inventory Accounts payable Accrued liabilities $16,000 45,000 85,000 57,000 22,000

Sandhill Co. follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Sandhill for the year ended December 31, 2022: Cash Accounts receivable Inventory Accounts payable Accrued liabilities $16,000 45,000 85,000 57,000 22,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sandhill Co. follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Sandhill for the year ended December 31, 2022: Cash Accounts receivable Inventory Accounts payable Accrued liabilities $16,000 45,000 85,000 57,000 22,000
Transcribed Image Text:Sandhill Co. follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Sandhill for the year ended December 31, 2022: Cash Accounts receivable Inventory Accounts payable Accrued liabilities $16,000 45,000 85,000 57,000 22,000
During 2023, Sandhill had the following transactions: Total sales were $495,000. Of the total sales amount, $240,000 was on a credit basis. On June 30, a $45,000 account receivable of a major customer was settled, with Sandhill accepting a $45,000, one-year, 11% note, with the interest payable at maturity. Sandhill collected $190,000 on accounts receivable during the year. At December 31, 2023, Cash had a balance of $17,000, Inventory had a balance of $84,000, Accounts Payable was $79,000, and Accrued Liabilities was $16,000. 1. 2. 3. 4. Calculate the current ratio and the receivables turnover ratio for Sandhill at December 31, 2023. (Round answers to 2 decimal places, e.g. 1.25.) Current Ratio Accounts Receivable Turnover times
Transcribed Image Text:During 2023, Sandhill had the following transactions: Total sales were $495,000. Of the total sales amount, $240,000 was on a credit basis. On June 30, a $45,000 account receivable of a major customer was settled, with Sandhill accepting a $45,000, one-year, 11% note, with the interest payable at maturity. Sandhill collected $190,000 on accounts receivable during the year. At December 31, 2023, Cash had a balance of $17,000, Inventory had a balance of $84,000, Accounts Payable was $79,000, and Accrued Liabilities was $16,000. 1. 2. 3. 4. Calculate the current ratio and the receivables turnover ratio for Sandhill at December 31, 2023. (Round answers to 2 decimal places, e.g. 1.25.) Current Ratio Accounts Receivable Turnover times
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