Tri-State Equipment reported the following items on July 31, 2018 (last year?s amounts are also given as needed):

Requirements

1. Compute Tri-State Equipment?s (a) quick ratio, (b) current ratio, and (c) accounts receivable turnover for 2018.

2. Evaluate each ratio value as strong or weak. Assume Tri-State Equipment sells on terms of net 30.

Transcribed Image Text:

Accounts Payable. . Cash. . Inventory: July 31, 2018 . July 31, 2017 Net Credit Sales . Long-term Assets Long-term Liabilities. Accounts Receivable, Net: July 31, 2018 . $45,000 21,500 $28,000 16,000 July 31, 2017 Cost of Goods Sold. . Short-term Investments. Other Current Assets... Other Current Liabilities. 112,000 16,000 10,000 14,500 15,000 14,000 277,700 43,000 4,000