Question: The following data are from the 2015 financial report of

The following data are from the 2015 financial report of Generic Clothing Company:


a. Based upon the above data, compute the following for Generic Clothing Company for both 2014 and 2015:
(1) The current ratio
(2) The quick ratio
b. Assume that net credit sales for the years ended December 31, 2014, and 2015, were $780,000 and $800,000, respectively, and that the balance of accounts receivable as of January 1, 2014, was $100,000.
Compute the receivables turnover and days outstanding for both years.
c. Does it appear that the solvency position of the company improved or worsened from 2014 to 2015? Explain.
View Solution:


Sale on SolutionInn
Sales0
Views108
Comments
  • CreatedAugust 19, 2014
  • Files Included
Post your question
5000