Winterwear Clothiers reported the following selected items at April 30, 2025 (last year's-2024-amounts also given as needed): View the financial data. Compute Winterwear Clothiers' (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending April 30, 2025. Evaluate each ratio value as strong or weak. Winterwear Clothiers sells of terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Winterwear Clothiers' acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. =Receivable; Rev. = Revenue.) Financial Data = Acid-test ratio Accounts Payable Cash $ 320,000 Accounts Receivable, net: 260,000 Merchandise Inventory: April 30, 2025 April 30, 2024 $ 270,000 170,000 April 30, 2025 290,000 Cost of Goods Sold 1,150,000 April 30, 2024 200,000 Short-term Investments 140,000 Net Credit Sales Revenue 2,920,000 Other Current Assets 120,000 Long-term Assets 420,000 Other Current Liabilities 180,000 Long-term Liabilities 130,000

Winterwear Clothiers reported the following selected items at April 30, 2025 (last year's-2024-amounts also given as needed): View the financial data. Compute Winterwear Clothiers' (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending April 30, 2025. Evaluate each ratio value as strong or weak. Winterwear Clothiers sells of terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Winterwear Clothiers' acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. =Receivable; Rev. = Revenue.) Financial Data = Acid-test ratio Accounts Payable Cash $ 320,000 Accounts Receivable, net: 260,000 Merchandise Inventory: April 30, 2025 April 30, 2024 $ 270,000 170,000 April 30, 2025 290,000 Cost of Goods Sold 1,150,000 April 30, 2024 200,000 Short-term Investments 140,000 Net Credit Sales Revenue 2,920,000 Other Current Assets 120,000 Long-term Assets 420,000 Other Current Liabilities 180,000 Long-term Liabilities 130,000

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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