1.Calculate the following ratios for2018?and2017.?When calculating??days, round your answer to the nearest whole number. a.Current ratio b.Quick?(acid-test)?ratio...
Question:
1.Calculate the following ratios for2018?and2017.?When calculating??days, round your answer to the nearest whole number.
a.Current ratio
b.Quick?(acid-test)?ratio
c.Inventory turnover and??days' inventory outstanding?(DIO)
d.Accounts receivable turnover
e.Days' sales in average receivables or??days' sales outstanding?(DSO)
f.Accounts payable turnover and??days' payable outstanding?(DPO).?Use cost of goods sold in the formula for accounts payable turnover.
g.Cash conversion cycle?(in days)
?(When calculating??days, round your answer to the nearest whole??number.)
2.Evaluate the??company's liquidity and current??debt-paying ability for2018.?Has it improved or deteriorated from2017??
3.As a manager of this??company, what would you try to improve next??year?
2018
Balance Sheet:
Cash $65000
Short-term investments8,000
Net receivables79,000
Inventory93000
Prepaid expenses4000
Total current assets249,000
Accounts payable80,000
Total current liabilities132,000
Income statement:
Net credit sales500,000
Cost of goods sold273,000
2017
Balance Sheet:
Cash $91,000
Short-term investments220,000
Net receivables82,000
Inventory76,000
Prepaid expenses7000
Total current assets278,000
Accounts payable25,000
Total current liabilities91,000
Income statement:
Net credit sales513,000
Cost of goods sold281,000
2016
Balance Sheet:
Cash $0
Short-term investments0
Net receivables65,000
Inventory60,000
Prepaid expenses0
Total current assets0
Accounts payable60,000
Total current liabilities0
Income statement:0
Net credit sales0
Cost of goods sold0
Expert Answer:
Financial Ratios for 2018 and 2017 2018 a Current Ratio Current Ratio Current Assets Current Liabili... View the full answer
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
