Review the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete the following. A.
Question:
Review the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete the following.
A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019.
B. Compute the number of day’s sales in receivables ratios for each company for 2018 and 2019.
C. Determine which company is the better investment and why. Round answers to two decimal places.
Transcribed Image Text:
Assets: Cash Accounts Receivable Inventory Equipment Total Assets: Liabilities: Salaries Payable Accounts Payable Notes Payable LIQUOR PLAZA Comparative Balance Sheet December 31, 2017, 2018, and 2019 Equity: Common Stock Retained Earnings Total Liabilities and Equity: 2019 $ 552,932 300,050 190,704 201,101 $1,244,787 $ 200,801 107,657 95,464 $ 67,435 773,430 $1,244,787 2018 $544,307 298,450 209,726 230,334 $1,282,817 $ 188,632 113,828 98,272 $ 64,955 817,130 $1,282,817 2017 $520,000 287,650 60,301 84,281 $952,232 $184,210. 115,222 100,460 $ 62,800 489,540 $952,232 BEER BUDDIES Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 $384,140 365,500 96,440 106,412 $952,492 $232,100 99,464 88,521 $ 50,000 482,407 $952,492 2018 $322,620 $ 300,466 356,000 324,400 72,555 284,428 55,891 302,780 $807,066 $1,212,074 $212,120 101,360 92,208 $ 50,000 351,378 $807,066 2017 $ 202,655 111,111 94,885 $ 50,000 753,423 $1,212,074
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Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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