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 . To calculate: G Clothiers’ acid-test ratio for 2016.

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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.

To calculate: G Clothiers’ acid-test ratio for 2016.

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

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Students have asked these similar questions

10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B Compute the number of days sales in receivables ratios for each company for 2018 and 2019 C. Determine which company is the better investment and why. Round answers to two decimal places.

Millennial Manufacturing has net credit sales for 2018 in the amount of $1,443,630, beginning accounts receivable balance of $588,900, and an ending accounts receivable balance of $624,450. A. Compute the accounts receivable turnover ratio and the number of days' sales in receivables ratio for 2018. Round answers to two decimal places. times days B. What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of day's sales ratio is 180 days? Accounts receivable turnover ratio Sales in receivables ratio a. Millennial Manufacturing collects its accounts more quickly than its competitors. b. A lender may favour Millennial Manufacturing over its competitors because of its faster collection period. c. Without prior years' data it is hard to tell if Millennial Manufacturing is really more efficient than its competitors. d. All of the above statements may be correct.

The following information from Tiny Company’s first year of operations is to be used in testing the accuracy of Accounts Receivable. The December 31, 2015, balance is $28,300. (a) Collections from customers, $48,000 (b) Merchandise purchased, $74,000 (c) Ending merchandise inventory, $31,500 (d) Goods sell at 60% above cost (e) All sales on account Compute the balance that Accounts Receivable should show and determine the amount of any shortage or overage.

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

Expert Solution & Answer

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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.

To calculate: G Clothiers’ acid-test ratio for 2016.

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

Answer 8

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

Answer 9

(b)

To determine

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.

To calculate: G Clothiers’ accounts receivable turnover ratio.

Answer 10

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

Answer 11

(c)

To determine

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: G Clothiers’ days’ sales in receivables for 2016.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1QC Ch. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...

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 . To calculate: G Clothiers’ acid-test ratio for 2016.

Solution Summary: The author calculates G Clothiers' acid-test ratio, which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately.

Concept explainers

Videos

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

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: G Clothiers’ days’ sales in receivables for 2016.

Want to see the full answer?

Chapter 8 Solutions

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 . To calculate: G Clothiers’ acid-test ratio for 2016.

Solution Summary: The author calculates G Clothiers' acid-test ratio, which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately.

Concept explainers

Videos

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. To calculate: G Clothiers’ acid-test ratio for 2016.

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: G Clothiers’ days’ sales in receivables for 2016.

Want to see the full answer?

Chapter 8 Solutions

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.

To calculate: G Clothiers’ acid-test ratio for 2016.

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: G Clothiers’ days’ sales in receivables for 2016.