Algonquin, Inc., reported the following items at December 31, 2012, and 2011: Requirements 1. Compute Algonquins (a)
Question:
Requirements
1. Compute Algonquins (a) quick (acid-test) ratio and (b) days sales in average receivables for 2012. Evaluate each ratio value as strong or weak. Algonquin sells on terms of net 30 days.
2. Recommend two ways for Algonquin to speed up its cash flow fromreceivables.
Transcribed Image Text:
Balance Sheets (Summarized) Year End Year End 2012 2011 2012 2011 Current assets: Current liabilities: Cash Marketable securities Accounts receivable, net Inventory Other current assets S 6,000 12,000 Accounts payable 15,00016,500 107,000 109,000 15,000 16,000 22,00011,000Other current liabilities 56,00070,000 Long-term liabilities 193,000 189,000 3,000 3,000 Stockholders' equity 143,000143,500 Long-term assets Total assets S280,000 $285,000 Total liabili ties and equity $280,000 $285,000 Income Statement (partial): 2012 Sales revenue $728,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
Req 1 Quick Marketable Net current a acidtest Cash securities ...View the full answer
Answered By
Syed Heena Samreen
I'm pursuing Doctor of pharmacy 2nd year, I like teaching because it's a side pocket income for students dng their higher studies and even it's like a part time job... While studying to teach is very useful to students as we can use our knowledge that we gain from various fields and internships and even it will be like a good experience for us. We will be focused to make sure that we give quality answers to students that helps them..
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted:
Students also viewed these Accounting questions
-
A company sells on terms of net 30 days and is considering a change to net 60 days. The firm wants to invest in projects that generate an ROA greater than 20%. The expected effect of the change in...
-
Cherokee, Inc., reported the following items at December 31, 2010 and 2009: Requirement 1. Compute Cherokees (a) Acid-test ratio (b) Days sales in average receivables for 2010. Evaluate each ratio...
-
Navajo, Inc., reported the following items at December 31, 2010 and 2009: Requirement 1. Compute Navajos (a) Acid-test ratio (b) Days sales in average receivables for 2010. Evaluate each ratio value...
-
Calculate the shape factor f for the wide flange beam shown in the figure if h = 12.2 in., b = 8.08 in., tf = 0.64 in., and tw = 0.37 in. Iw
-
An entity may report significant profits over a number of successive years and still experience negative net cash flows from its operating activities. How can this happen?
-
Had the dealer engaged in deceptive advertising? Why or why not? Leota Sage saw a local motorcycle dealers newspaper advertisement for a MetroRider EZ electric scooter for $1,699. When she went to...
-
An incompressible fluid flows through the converging duct shown in Fig. P4.40a with velocity \(V_{0}\) at the entrance. Measurements indicate that the actual velocity of the fluid near the wall of...
-
Eclipse Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2012, Eclipse Motorcycle Shop incorrectly...
-
How do I relate the below case study to RLR - Responsible Leadership for Relations? Relate and analyses in detail....
-
Use Table 4 of the Appendix to find tc for a 0.95 confidence level when the sample size is 18. Critical Values for Student's t Distribution TABLE 4 one-tail area 0.250 0.125 0.100 0.075 0.050 0.025...
-
Queen City Credit Union completed these transactions: Show what the company would report for these transactions on its December 31, 2012, and 2013 balance sheets and income statements. Use a 12-month...
-
Creative Co., Inc., the electronics and appliance chain, reported these figures in millions of dollars: Requirements 1. Compute Creatives days sales in receivables, or days sales outstanding (DSO)...
-
Factor the given expressions completely. nx + 5n x 2 + 25
-
A child's ball ( a thin hollow uniform sphere ) of mass 2 8 . 7 g and radius 0 . 3 3 8 m starts from rest and rolls without slipping down an inclined plane of vertical height 6 . 2 m . What is the...
-
Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following...
-
A cannon with its open end at an initial height of 1.5 meters above the ground fires a cannonball at an angle of 40 above the horizontal. It travels a horizontal distance of 40.0 meters to a 4.0...
-
Parallel plates are separated by a distance of 10.0 cm as shown, and connected to a 18.5 V battery. Each plate has a small hole in it, and point P shows a certain location 4.00 am from one of the...
-
Thando Mahlangu is a first-year trainee accountant. You are the audit senior in charge of the audit of Bad Wolf (Pty) Ltd, a large pig farming operation in Limpopo. The financial year-end of Bad Wolf...
-
Assign the oxidation states of all elements in each of the following: (a) CaC 2 O 4 (b) Ba(ClO 4 ) 2 (c) Tl 3+
-
Propose a reasonable mechanism for the following reaction. OH
-
Christo Manufacturing Company incurs the following manufacturing costs and expenses during the month of May. Complete the matrix by placing an (X) under the appropriate headings. Cost Item a....
-
At the end of its first year, the trial balance of Jules Company shows Equipment $22,000 and zero balances in Accumulated DepreciationEquipment and Depreciation Expense. Depreciation for the year is...
-
On July 1, 2012, Ryhn Co. pays $12,400 to Craig Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Ryhn Co., journalize and post the entry on July...
-
Using the data in BE4-6, journalize and post the entry on July 1 and the adjusting entry on December 31 for Craig Insurance Co. Craig uses the accounts Unearned Service Revenue and Service Revenue.
-
Assume we are using MergeSort on comparable Students who are compared with respect to their gpa. Assume we have an array of 8 students: [{name:"Ali", gpa:2.9}, {name:"Aye", gpa:3.1}, {name:"Sevil",...
-
Consider a two-input neuron that multiplies its two inputs x1 and x2 to obtain the output 'o'. Let L be the loss function that is computed at 'o'. Suppose that if the values of 044 = 5, x1 = 2, and...
-
The classification problem with four classes of input vector are Class 1: {p = [1], P2 = [2]}, Class 2: {p3 = [21],P4 = []}, Class 3: {ps = [2], P6 = []}, Class 4: {p7 = [1], P = [2]} Design a...
Study smarter with the SolutionInn App