Using the information for Sarot, Inc., in SE. 4 and SE 5, compute the current ratio, quick
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Using the information for Sarot, Inc., in SE. 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, day's sales uncollected, inventory turnover, days' inventory on hand, payables turnover, and days' payable for 2011 and 2012. Inventories were $16,000 in 2010, $20,000 in 2011, and $28,000 in 2012. Accounts receivable were $ 24,000 in 2010, $32,000 in 2011, and $40,000 in 2012. Accounts payable were $36,000 in 2010, $40,000 in 2011, and $48,000 in 2012. The company had no marketable securities or prepaid assets. Comment on the results.
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...
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