The comparative financial statements of Bien Taco Restaurants for 2013, 2012, and 2011 include the following selected

Question:

The comparative financial statements of Bien Taco Restaurants for 2013, 2012, and 2011 include the following selected data:

The comparative financial statements of Bien Taco Restaurants for 2013,

Requirements
1. Compute these ratios for 2013 and 2012:
a. Quick ratio.
b. Accounts receivable turnover. Assume all sales are credit sales.
2. Write a memo explaining to the company owner which ratios improved from 2012 to 2013, which ratios deteriorated, and which items in the financial statements changed and caused changes in some ratios. Discuss whether this conveys a favorable or an un-favorable impression about the company.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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