Question

Algonquin Carpets reported the following amounts in its 2014 financial statements. The 2013 figures are given for comparison.


Requirements
1. Calculate Algonquin’s acid-test ratio for 2014. (Round to two decimals.) Determine whether Algonquin’s acid-test ratio improved or deteriorated from 2013 to 2014. How does Algonquin’s acid-test ratio compare with the industry average of 0.80?
2. Calculate Algonquin’s accounts receivable turnover ratio. (Round to two decimals.) How does Algonquin’s ratio compare to the industry average accounts receivable turnover of 10?
3. Calculate the days’ sales in receivables for 2014. (Round to the nearest day.) How do the results compare with Algonquin’s credit terms of net30?


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  • CreatedJanuary 16, 2015
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