The accountant at Storm Inc. gathered the following selected accounting information: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Accounts payable Salaries payable Income taxes payable Bonds payable (due 2019) Sales Cost of goods sold 2022 $ 35,000 28,000 33,000 47,000 7,000 55,000 10,000 3,000 90,000 250,000 180,000 2023 $33,000 29,000 30,000 50,000 5,500 62,000 8,000 2,500 90,000 230,000 165,000 Required 1. Compute the acid-test ratio for 2022 and 2023. 2. Compute the days' sales in average receivables for 2022 and 2023. Net accounts receivable on December 31, 2021 was $27,000.

The accountant at Storm Inc. gathered the following selected accounting information: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Accounts payable Salaries payable Income taxes payable Bonds payable (due 2019) Sales Cost of goods sold 2022 $ 35,000 28,000 33,000 47,000 7,000 55,000 10,000 3,000 90,000 250,000 180,000 2023 $33,000 29,000 30,000 50,000 5,500 62,000 8,000 2,500 90,000 230,000 165,000 Required 1. Compute the acid-test ratio for 2022 and 2023. 2. Compute the days' sales in average receivables for 2022 and 2023. Net accounts receivable on December 31, 2021 was $27,000.

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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