Marshall, Inc., reported the following items at December 31,2016, and 2015: Requirements 1. Compute Marshall's (a) quick
Question:
Requirements
1. Compute Marshall's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2016. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days.
2. Recommend two ways for Marshall to speed up its cash flow from receivables.
Transcribed Image Text:
A1 Balance Sheets Summarized) ear-end Year-end 2016 2016 16,000 17,500 20,000 21,000 48,000 148,500 91,000 296,000 4 2015 2015 5 Current assets as Current liabilities: 15,000 11,000 Accounts payable 22,00011,000 Other current liabilities 107,000 109,000 Marketable securities 8 Accounts receivable, net 54,000 68,000 Long-term liabilities 9 Inventory 10 Other current assets 11 Long-term assets 12 Total assets 13 14 Income statement (partial): 2016 15 Sales Revenue 17 194,000 190,000 6,000 Stockholders' equity 10,000 6,000 291,000 S2 96,000 Total liabilities and equity- 727,000
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Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
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