Acid-test ratio: The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio . Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. To calculate: S Clothiers’ acid-test ratio for 2018.

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Answer 1

Question

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

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Answer 2

Question

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Answer 6

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

Answer 7

Chapter 8, Problem 8.13SE

(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: S Clothiers’ acid-test ratio for 2018.

Answer 8

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

Answer 9

(b)

To determine

To calculate: S Clothiers’ accounts receivable turnover ratio.

Answer 10

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Answer 11

(c)

To determine

To calculate: S Clothiers’ days’ sales in receivables for 2018.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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