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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Hi expert please give me answer general accounting question

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows: Plug Products Spark Filter Company Credit Debit Credit Debit Cash and Accounts Receivable $ 146,000 $ 95,000 Inventory 236,000 119,000 Buildings and Equipment (net) 288,000 187,000 Investment in Spark Filter Company 267,789 Cost of Goods Sold 172,000 137,000 Depreciation Expense 40,000 30,000 Current Liabilities $ 170,147 $ 53,947 Common Stock 192,000 73,000 Retained Earnings 460,000 216,000 Sales 275,053 225,053 Income from Spark Filter Company 52,589 Total $ 1,149,789 $ 1,149,789 $ 568,000 $ 568,000 On January 1, 20X8, Plug's inventory contained filters purchased…

Volume-based rates produce inaccurate product cost when: Multiple Choice A large portion of factory overhead cost is not volume-based. Firms produce a diverse mix of products. Large volumes of a product are manufactured. Both a lack of volume-based overhead and there is a large range of products. None of these answer choices are correct.

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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See solution

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.