Silver Clothiers reported the following selected items at April 30, 2024 (last year’s—2023—amounts also given as needed):

Compute Silver’s 

(a) Acid-test ratio, 

(b) Accounts receivable turnover ratio, and 

(c) Days’ sales in receivables for the year ending April 30, 2024. Evaluate each ratio value as strong or weak. Silver sells on terms of net 30.

Transcribed Image Text:

Accounts Payable Cash Merchandise Inventory: April 30, 2024 April 30, 2023 Net Credit Sales Revenue Long-term Assets Long-term Liabilities $ 328,000 573,720 250,000 210,000 3,212,000 350,000 130,000 Accounts Receivable, net: April 30, 2024 April 30, 2023 Cost of Goods Sold Short-term Investments Other Current Assets Other Current Liabilities $ 11,000 165,000 1,200,000 148,000 100,000 188,000