The current ratio for E News Incorporation for the year 2017 and 2018.

Question

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Answer 1

Question

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Expert Solution & Answer

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Answer 2

Question

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Answer 6

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Answer 7

Chapter 12, Problem 12.21AE

Requirement - 1.a.

To determine

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

Answer 8

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Answer 9

Requirement 1.b.

To determine

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

Answer 10

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Answer 11

Requirement 1.c.

To determine

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

Answer 12

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Answer 13

Requirement 1.d.

To determine

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

Answer 14

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Answer 15

Requirement 1.e.

To determine

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

Answer 16

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Answer 17

Requirement 1.f.

To determine

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

Answer 18

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Answer 19

Requirement 1.g.

To determine

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

Answer 20

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Answer 21

Requirement 2

To determine

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

Answer 22

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Answer 23

Requirement 3

To determine

To Mention: The necessary improvements needed in next year.

Answer 24

Expert Solution & Answer

Answer 25

Expert Solution & Answer

Answer 26

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Answer 27

Ch. 12 - Prob. 1QC Ch. 12 - Prob. 2QC Ch. 12 - Prob. 3QC Ch. 12 - Prob. 4QC Ch. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QC Ch. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...

The current ratio for E News Incorporation for the year 2017 and 2018.

Solution Summary: The author explains that the current ratio of E News Incorporation for the year 2017 and 2018 is 2.92 and 2.15 respectively. The quick (acid-test) ratio is a more rigorous test of solvency.

Videos

To Compute: The current ratio for E News Incorporation for the year 2017 and 2018.

To Compute: The quick (acid-test) ratio for E News Incorporation for the year 2017 and 2018.

To Compute: The inventory turnover and days’ inventory outstanding (DIO) for E News Incorporation for the year 2017 and 2018.

To Compute: The accounts receivable turnover for E News Incorporation for the year 2017 and 2018.

To Compute: The days’ sales outstanding for E News Incorporation for the year 2017 and 2018.

To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for E News Incorporation for the year 2017 and 2018.

To Compute: The cash conversion cycle (in days) for E News Incorporation for the year 2017 and 2018.

To Comment: Whether the above calculated ratios of 2018 has improved or deteriorated from 2017.

To Mention: The necessary improvements needed in next year.

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Chapter 12 Solutions