The following information was taken from statement of financial position of ABC Company. Calculate the Current Ratio, Acid test Ratio, Cash Ratio and Debt Ratio. Cash P13,250.00 Accounts Receivable (net) 33,000.00 Merchandise inventory 40,000.00 Prepaid expenses 9,950.00 Accounts Payable 25,200.00 Accrued Payables 1,800.00 Notes Payable (due in 6 months) 10,000.0

The following information was taken from statement of financial position of ABC Company. Calculate the Current Ratio, Acid test Ratio, Cash Ratio and Debt Ratio. Cash P13,250.00 Accounts Receivable (net) 33,000.00 Merchandise inventory 40,000.00 Prepaid expenses 9,950.00 Accounts Payable 25,200.00 Accrued Payables 1,800.00 Notes Payable (due in 6 months) 10,000.0

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Description: The following information was taken from statement of financial position of ABC Company. Calculate the Current Ratio, Acid test Ratio, Cash Ratio and Debt Ratio.Cash P13,250.00Accounts Receivable (ne

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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Selected data from Thornton Company follow. Balance Sheets As of December 31 Year 2 $377,000 (15,080) $361,920 Year 3 $393,000 (19,650) Accounts receivable Allowance for doubtful accounts Net accounts receivable $373,350 Inventories, lower of cost or market $477,000 $434,000 Income Statement For the Years Ended December 31 Year 3 Year 2 Net credit sales Net cash sales $2,004,000 400,000 $1,753,000 307,000 Net sales 2,404,000 2,060,000 Cost of goods sold Selling, general, and administrative expenses Other expenses 1,602,000 240,300 40,200 $1,882,500 1,420,000 214,300 24,000 Total operating expenses $1,658,300 Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover for Year 3. c. Compute the net margin for Year 2. (For all requirements, round your answers to 2 decimal places.) a. Accounts receivable turnover times b. Inventory turnover times c. Net margin %
Accounts Receivable Turnover and Average Collection Period VanPoole Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 $167,096 $181,662 33,350 32,870 32,870 32,635 Net sales Beginning accounts receivable (net) Ending accounts receivable (net) a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period. Year 1 Year 2 a. Accounts receivable turnover b. Average collection period (days) 0 0 0 0 c. Is the company's accounts receivable management improving or deteriorating?
3. The following data are taken from the financial statements of Sigmon Inc. Terms of all are 2/10, n/45. Accounts Receivable, end of year Sales on account of Required: 20Y3 $725,000 $5,637,000 a. For 20Y2 and 20Y3, determine: 1. Accounts Receivable Turnover 2. The number of Days' Sales in Receivables 20Y2 $650,000 $4,687,000 20Y1 $600,000 b. What conclusions can you draw from these data concerning Sigmon's accounts receivable and credit policies?
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
Cash and accounts receivable for Adams Company are provided below: Prior Year Current Year Cash $50,799 Accounts receivable (net) 26,163 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Cash Accounts Receivable $41,300 45,900
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Line Item Description Current Year Previous Year Current assets: Cash $445,700 $352,000 Marketable securities 516,100 396,000 Accounts and notes receivable (net) 211,200 132,000 Inventories 370,300 241,600 Prepaid expenses 190,700 154,400 Total current assets $1,734,000 $1,276,000 Current liabilities: Accounts and notes payable (short-term) $295,800 $308,000 Accrued liabilities 214,200 132,000 Total current liabilities $510,000 $440,000 a. Determine for each year the quick ratio. Round ratios to one decimal place.
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