1) The accountant at Parker & Sisters gathered the following selected accounting information: 20X9 $ 40,000...

 

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1) The accountant at Parker & Sisters gathered the following selected accounting information: 20X9 $ 40,000 Cash at bank Short-term investments Accounts receivable (net) Inventory Prepaid expenses Accounts payable Salary payable Income taxes payable Debentures payable (due 20X9) Net credit sales Cost of goods sold a) Calculate the acid-test ratio for 20X8 and 20X9. b) Calculate the days' sales in receivables for 20X8 and 20X9. The accounts receivable (net) at 31 December 20X7, were $39,000. c) Are the ratios improving or deteriorating? Explain? 27,000 35,000 62,000 7,000 61,000 20X8 $ 32,000 17,000 23,000 65,000 16,000 11,000 80,000 270,000 165,000 8,000 54,000 15,000 9,000 80,000 235,000 141,000 1) The accountant at Parker & Sisters gathered the following selected accounting information: 20X9 $ 40,000 Cash at bank Short-term investments Accounts receivable (net) Inventory Prepaid expenses Accounts payable Salary payable Income taxes payable Debentures payable (due 20X9) Net credit sales Cost of goods sold a) Calculate the acid-test ratio for 20X8 and 20X9. b) Calculate the days' sales in receivables for 20X8 and 20X9. The accounts receivable (net) at 31 December 20X7, were $39,000. c) Are the ratios improving or deteriorating? Explain? 27,000 35,000 62,000 7,000 61,000 20X8 $ 32,000 17,000 23,000 65,000 16,000 11,000 80,000 270,000 165,000 8,000 54,000 15,000 9,000 80,000 235,000 141,000

Answer rating: 100% (QA)

9 Acid Test Ratio Quick Assche Current Liabilities a 2019 40000 270... View the full answer