Algonquin Equipment reported the following items on November 30, 2013 (amounts in thousands, with last years amounts
Question:
Algonquin Equipment reported the following items on November 30, 2013 (amounts in thousands, with last year’s amounts also given as needed):
Accounts Payable .......$ 434
Cash .............. 210
Inventory:
November 30, 2013 ...... 170
November 30, 2012 ....... 130
Net Credit Sales ....2,450
Long-term Assets...... 410
Long-term Liabilities ..... 60
Accounts Receivable, Net:
November 30, 2013 .... $200
November 30, 2012 .... 110
Cost of Goods Sold .... 800
Short-term Investments .... 170
Other Current Assets .... 30
Other Current Liabilities ... 170
Requirements
1. Compute Algonquin Equipment’s (a) quick ratio and (b) accounts receivable turnover for 2013.
2. Evaluate each ratio value as strong or weak. Assume Algonquin Equipment sells on terms of net 30.
Accounts ReceivableAccounts 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...
Step by Step Answer:
a A quick ratio of 096 is strong b An accounts receivabl...View the full answer
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
