Refer to the data in Exercise 16-2 for Heritage Antiquing Services. Required: Compute the following financial data

Question:

Refer to the data in Exercise 16-2 for Heritage Antiquing Services.
Required:
Compute the following financial data for short-term creditors for this year:
1. Working capital.
2. Current ratio.
3. Acid-test ratio.
4. turnover. (Assume that all sales are on account.)
5. Average collection period.
6. Inventory turnover.
7. Average sale period.

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...