Assume a company has the following financial information: Cash and short-term investments $ 6 Prepaid expenses -0-

Question:

Assume a company has the following financial information:
Cash and short-term investments $ 6
Prepaid expenses -0-
Capital assets 90
Total liabilities 40
Shareholders' equity 140
Sales 420
Credit sales 300
Current ratio 2.5:1
Acid-test ratio 1:1
Gross profit ratio 30%
Assume current assets consist of cash, short-term investments, inventory, and prepaid expenses, and that ending balances are the same as average balances for the year.
Required: Calculate
1. Current liabilities
2. Inventory
3. collection period
4. Number of days of sales in inventory.
5. (Appendix) Net financial debt. Assume current liabilities consist of a bank loan. 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...