The comparative financial statements of Sunset Pools, Inc., for 2023, 2022, and 2021 included the following select

Question:

The comparative financial statements of Sunset Pools, Inc., for 2023, 2022, and 2021 included the following select data:

Requirements

1. Compute the following ratios for 2023 and 2022:

a. Current ratio

b. Quick (acid-test) ratio

c. Days’ sales outstanding

2. Which ratios improved from 2022 to 2023 and which ratios deteriorated? Are each of the trends favorable or unfavorable?

3. Recommend two ways for Sunset Pools to improve cash flows from receivables.

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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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Question Posted: Feb 13, 2023 06:03 AM

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The comparative financial statements of Sunset Pools, Inc., for 2023, 2022, and 2021 included the following select

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Step by Step Answer:

Req 1 An alternate way to compute days sales outstanding Req 2 The current ratio improved from 138 ...View the full answer

Financial Accounting

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