Using the information for Obras, Inc., in SE 4 and SE 5, compute the current ratio, quick
Question:
Using the information for Obras, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, days’ sales uncollected, inventory turnover, days’ inventory on hand, payables turnover, and days’ payable for 20x8 and 20x9. Inventories were $8,000 in 20x7, $10,000 in 20x8, and $14,000 in 20x9. Accounts receivable were $12,000 in 20x7, $16,000 in 20x8, and $20,000 in 20x9. Accounts payable were $18,000 in 20x7, $20,000 in 20x8, and $24,000 in 20x9. The company had no marketable securities or prepaid assets. Comment on the results. (Round computations to one decimal place.)
Accounts PayableAccounts 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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
Question Posted: