Harold Limited's condensed financial statements provide the following information: Instructions (a) Determine the following: 1. Current ratio

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Harold Limited's condensed financial statements provide the following information:

Harold Limited's condensed financial statements provide the following information:
Instructions
(a

Instructions
(a) Determine the following:
1. Current ratio at December 31, 2017
2. Acid-test ratio at December 31, 2017
3. Accounts receivable turnover for 2017
4. Inventory turnover for 2017
5. Days payables outstanding for 2017
6. Rate of return on assets for 2017
7. Profit margin on sales
(b) Prepare a brief evaluation of the financial condition of Harold Limited and of the adequacy of its profits.
(c) In examining the other current liabilities on Harold Limited's statement of financial position, you notice that unearned revenues have declined in the current year compared with the previous year. Is this a positive indicator about the client's liquidity? Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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