Assume Black Corporation reported the following items at year-ends 2014 and 2013. Requirements 1. Compute Black's (a)
Question:
Requirements
1. Compute Black's (a) acid-test ratio and (b) days' sales in average receivables for 2014.
Evaluate each ratio value as strong or weak. Assume Black sells on terms of net 30 days.
2. Recommend two ways the company can speed up its cash flow.
Black Corporation Consolidated Balance Sheets (Summarized) amounts in millions) March 1, March 3 2014 2013 March 1, March 3, 2014 2013 Current assets: Current liabilities: $1,184.4$ 677.1 Accounts payable s 271.1 $ 130.3 20.7 310. Other current liabilities1,203.3 416.3 103.2 58.8 Short-term investments... Accounts receivable, net 1,174.7 572.6 Long-term liabilities Inventories Other current assets.. 396.3 255.9 301.3 103.6 Shareholders' equity Capital assets Total assets 2,033.8 1,169.6 $5,511.2 $3,088.9 Total liabilities and e quity...$5.511.2 $3,088.9 Income Statement (partial): 2014 Revenue $6,009.4
Step by Step Answer:
1 Amounts in millions of dollars Shortterm Accounts a Acidtest Cash investments receiva...View the full answer
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
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