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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

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Answer 1

Question

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

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Hii expert please given correct answer general Accounting question

SUBJECT - GENERAL ACCOUNT Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $14,114. Of the $14,114, $8,395 was for material and $5,719 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $25,963. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $33,809 and factory overhead was $19,934. If the average cost method is used what would be the conversion cost per unit? a. $1.91 b. $5.31 c. $3.45 d. $1.73

Financial Accounting Question solve this problem

Answer 2

Question

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 6

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

Answer 7

Chapter 8, Problem 8.40BP

(1)(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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

Answer 8

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

Answer 9

(1)(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: B Cosmetic Supply’s accounts receivable turnover ratio for 2016 and 2015.

Answer 10

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

Answer 11

(1)(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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

Answer 12

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 13

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

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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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

Solution Summary: The author calculates B Cosmetic Supply's acid-test ratio for 2016 and 2015 by dividing the net credit sales by the average amount of net accounts receivables.

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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

Solution Summary: The author calculates B Cosmetic Supply's acid-test ratio for 2016 and 2015 by dividing the net credit sales by the average amount of net accounts receivables.

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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

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 compute: B Cosmetic Supply’s acid-test ratio for 2016 and 2015.

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: B Cosmetic Supply’s days’ sales in receivables for 2016 and 2015.