Use the information provided about Fairplay Inc in E12 5 to respond to the following a Calculate the following for 2017 and 2018 i Current ratio ii Quick ratio iii Accounts receivable turnover ratio iv Average collection period of accounts receivable v Inventory turnover ratio vi Average number of ...

a 2018 2017 i Current ratio 1410 1687 ii Quick ratio 0654 0854 iii Accounts receivable turnover ratio 10508 11833 iv Average collection period 34737 3 ...

Use the information provided about Fairplay Inc. in E12-5 to respond to the following. a. Calculate the

Question:

Use the information provided about Fairplay Inc. in E12-5 to respond to the following.
a. Calculate the following for 2017 and 2018:
i. Current ratio
ii. Quick ratio
iii. turnover ratio
iv. Average collection period of
vi. Average number of days inventory on hand
vii. turnover ratio
viii. Average payment period for
ix. Cash lag
b. Assume the role of an important new supplier to Fairplay. Use the amounts calculated in (a) to prepare a report assessing whether Fairplay should be granted credit terms for purchases from your company. Explain the conclusions you make.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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...