Algonquin, Inc., reported the following items at December 31, 2012, and 2011: Requirements 1. Compute Algonquins (a)
Question:
Requirements
1. Compute Algonquins (a) quick (acid-test) ratio and (b) days sales in average receivables for 2012. Evaluate each ratio value as strong or weak. Algonquin sells on terms of net 30 days.
2. Recommend two ways for Algonquin to speed up its cash flow fromreceivables.
Transcribed Image Text:
Balance Sheets (Summarized) Year End Year End 2012 2011 2012 2011 Current assets: Current liabilities: Cash Marketable securities Accounts receivable, net Inventory Other current assets S 6,000 12,000 Accounts payable 15,00016,500 107,000 109,000 15,000 16,000 22,00011,000Other current liabilities 56,00070,000 Long-term liabilities 193,000 189,000 3,000 3,000 Stockholders' equity 143,000143,500 Long-term assets Total assets S280,000 $285,000 Total liabili ties and equity $280,000 $285,000 Income Statement (partial): 2012 Sales revenue $728,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
Req 1 Quick Marketable Net current a acidtest Cash securities ...View the full answer
Answered By
Syed Heena Samreen
I'm pursuing Doctor of pharmacy 2nd year, I like teaching because it's a side pocket income for students dng their higher studies and even it's like a part time job... While studying to teach is very useful to students as we can use our knowledge that we gain from various fields and internships and even it will be like a good experience for us. We will be focused to make sure that we give quality answers to students that helps them..
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted:
Students also viewed these Accounting questions
-
A company sells on terms of net 30 days and is considering a change to net 60 days. The firm wants to invest in projects that generate an ROA greater than 20%. The expected effect of the change in...
-
Cherokee, Inc., reported the following items at December 31, 2010 and 2009: Requirement 1. Compute Cherokees (a) Acid-test ratio (b) Days sales in average receivables for 2010. Evaluate each ratio...
-
Navajo, Inc., reported the following items at December 31, 2010 and 2009: Requirement 1. Compute Navajos (a) Acid-test ratio (b) Days sales in average receivables for 2010. Evaluate each ratio value...
-
Calculate the shape factor f for the wide flange beam shown in the figure if h = 12.2 in., b = 8.08 in., tf = 0.64 in., and tw = 0.37 in. Iw
-
An entity may report significant profits over a number of successive years and still experience negative net cash flows from its operating activities. How can this happen?
-
Refer to Exercise 3. The mean amount of liquid in the bottles is 179.6 ml and the standard deviation is 1.3 ml. A significance test yields a P-value of 0.0589. Interpret the P-value. Exercise 3. One...
-
Consider the kinematic viscosity data in Table B.10. a. Perform a thorough residual analysis of these data. b. Identify the most appropriate transformation for these data. Fit this model and repeat...
-
Major Airlines would like to train new flight attendants in an economically rational way. The airline requires a staff of about 1,000 trained attendants to maintain in-flight service. Because of the...
-
The group project will involve students working in groups to develop a new social innovation for their own start-up business that addresses a well-defined social problem or contributes to a clear...
-
At June 30, 2022, the end of its most recent fiscal year, Green River Computer Consultants post-closing trial balance was as follows: The company underwent a major expansion in July. New staff was...
-
Queen City Credit Union completed these transactions: Show what the company would report for these transactions on its December 31, 2012, and 2013 balance sheets and income statements. Use a 12-month...
-
Creative Co., Inc., the electronics and appliance chain, reported these figures in millions of dollars: Requirements 1. Compute Creatives days sales in receivables, or days sales outstanding (DSO)...
-
The number N of daily new cases of COVID-19 that were reported in the United States t weeks after March 1, 2019 is shown in the following table. Plot N as a function of t on semilog paper. t 0 N 16 1...
-
Three point charges are located at the vertices of an equilateral triangle with sides 10 cm. The charges are q1= +2 mC, q2 = -4 mC, and q3 = -6 mC. Calculate the net force on each charge.. 10 cm 91...
-
A particle moves with the following trajectory: x = 0.22[m/s] t4 - cos(7.39Hzt) What is the instanteneous acceleration in the x direction at t = 54.2s? (Your calculator should be in radian mode.)...
-
Beginning Retained Earnings are $40,000 sales are $53,800 expenses are $44,000 and dividends paid are $2,900. How much is the net income or loss for the company?
-
(a) A velocity selector consists of electric and magnetic fields described by the expressions = E k and B = B , with B = 14.0 mT. Find the value of E (in kV/m) such that a 830 eV electron moving in...
-
8. Determine the magnetic force on a 0.35 m segment of a wire carrying a current of 12 A in a 0.92 T magnetic field, as illustrated in the diagram. In which direction is the magnetic force on the...
-
How would mistakes from the QTO process discussed in the four earlier QTO chapters affect the pricing processes in these four pricing chapters?
-
Propose a reasonable mechanism for the following reaction. OH
-
Christo Manufacturing Company incurs the following manufacturing costs and expenses during the month of May. Complete the matrix by placing an (X) under the appropriate headings. Cost Item a....
-
At the end of its first year, the trial balance of Jules Company shows Equipment $22,000 and zero balances in Accumulated DepreciationEquipment and Depreciation Expense. Depreciation for the year is...
-
On July 1, 2012, Ryhn Co. pays $12,400 to Craig Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Ryhn Co., journalize and post the entry on July...
-
Using the data in BE4-6, journalize and post the entry on July 1 and the adjusting entry on December 31 for Craig Insurance Co. Craig uses the accounts Unearned Service Revenue and Service Revenue.
-
why you assume value of Machine A is assumed to decrease by $7,000 each year for the purpose of these calculations?
-
1. You want to create a Dog object. Which of the following would you use to describe it? (Choose all that apply.) A. String breed B. int age C. boolean isADog D. String ownerName E....
-
Part 1: Cathy Forth Photography Services (20 marks) You have been hired by Cathy Forth as her new bookkeeper. She has given you the following information: Use the current date and provide an...
Study smarter with the SolutionInn App