Question: Gold Clothiers reported the following selected items at September 30

Gold Clothiers reported the following selected items at September 30, 2016 (last year’s—2015—amounts also given as needed):
Accounts Payable .......... $ 331,000
Cash ................. 302,900
Merchandise Inventory:
September 30, 2016 .......... 230,000
September 30, 2015 .......... 190,000
Net Credit Sales Revenue ....... 3,321,500
Long-term Assets .......... 450,000
Long-term Liabilities .......... 100,000
Accounts Receivable, net:
September 30, 2016 .......... $ 303,000
September 30, 2015 .......... 152,000
Cost of Goods Sold .......... 1,150,000
Short-term Investments ....... 151,000
Other Current Assets .......... 70,000
Other Current Liabilities ....... 191,000
Compute Golds
(a) Acid-test ratio,
(b) Accounts receivable turnover ratio, and
(c) Days’ sales in receivables for 2016. Evaluate each ratio value as strong or weak. Gold sells on terms of net 30.

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  • CreatedJune 15, 2015
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