Following are the selected balances taken from the books of Annie Ltd. at the end of...
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Following are the selected balances taken from the books of Annie Ltd. at the end of 2004. 270,000 Cost of goods sold Accounts payable 100,000 Merchandise inventory (1.1.04) 60,000 250,000 190,000 71,000 Bills payable Accounts receivable (1.1.04) Marketable securities Notes payable Cash Accounts receivable (31.12.04) Credit sales (Net) Cash Sale Merchandise inventory (31.12.04) REQUIRED On the basis of above information, compute: 1. Acid test ratio 2. Inventory turnover 3. Average days to accounts receivable 4. Gross profit a 5. Cash Ratio 15,000 54,000 175,000 912,500 37500 75,000 Following are the selected balances taken from the books of Annie Ltd. at the end of 2004. 270,000 Cost of goods sold Accounts payable 100,000 Merchandise inventory (1.1.04) 60,000 250,000 190,000 71,000 Bills payable Accounts receivable (1.1.04) Marketable securities Notes payable Cash Accounts receivable (31.12.04) Credit sales (Net) Cash Sale Merchandise inventory (31.12.04) REQUIRED On the basis of above information, compute: 1. Acid test ratio 2. Inventory turnover 3. Average days to accounts receivable 4. Gross profit a 5. Cash Ratio 15,000 54,000 175,000 912,500 37500 75,000
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Answer 1 Acid test ratio cash marketable securities current liabilities 5400071000100000... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
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