a. Based on these data, calculate the following for 2010 and 2009: 1. Days sales in receivables

Question:

a. Based on these data, calculate the following for 2010 and 2009:
1. Days’ sales in receivables
2. turnover (gross receivables at year- end)
3. Days’ sales in inventory
4. Inventory turnover (use inventory at year- end)
5. Working capital
6. Current ratio
7. Acid- test ratio
b. Comment on each ratio individually
c. Comment on the apparent total liquidity

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...