Saybrooke, Inc., reported the following items at December 31, 2016, and 2015: Requirmetns 1. Compute Saybrooke's (a)
Question:
Requirmetns
1. Compute Saybrooke's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2016. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days.
2. Recommend two ways for Saybrooke to speed up its cash flow from receivables.
Transcribed Image Text:
A1 Balance Sheets (Summarized) Year-end 2016 Year-end 2016 2015 2015 Current assets: Current liabilities: 6 Cash 16,000 23,000 12,000 Other current liabilities 107,000 109,000 12,000 Accounts payable 72,000 Long-term liabilities 2,000 Stockholders' equity 19,000 20,500 20,000 21,000 148,000148,500 299,000 Marketable securities 8 Accounts receivable, net 58,000 9 Inventory 10Other current assets 11 Long-term assets 12 Total assets 13 14 Income statement (partial):2016 15 Sals Revenue 16 95,000 191,000 2,000 - 10,000 294,000 S 299,000 Total liabilities and equity $ 294,000 732,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
Req1 a Marketable Net current Acidtest Cash securities re...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
Question Posted:
Students also viewed these Cost Accounting questions
-
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...
-
Algonquin, Inc., reported the following items at December 31, 2012, and 2011: Requirements 1. Compute Algonquins (a) quick (acid-test) ratio and (b) days sales in average receivables for 2012....
-
Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What impact will this error have on cost of goods sold and gross profit in the current year and following...
-
During the summer between her junior and senior years, Susan Irwin needed to earn sufficient money for the coming academic year. Unable to obtain a job with a reasonable salary, she decided to try...
-
The following section is taken from Budke Corp.s balance sheet at December 31, 2009. Current liabilities Bond interest payable ............ $ 72,000 Long-term liabilities Bonds payable, 9%, due...
-
Discuss the bill-of- quantities, function point, and three-point estimating methods, together with the merits and demerits of each.
-
Storage Systems, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the companys products is a heavy-duty corrosion-resistant metal...
-
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The standards for...
-
Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2018. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE...
-
At December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of Foley Distribution Service is $320,000. The Allowance for Doubtful Accounts has a $22,200 credit balance....
-
Costello Company purchases inventory from Terry Pool Supplies on June 1. The sales terms on the invoice from Terry Pool Supplies are 4/20, net 30. What does this mean? What is Costello's potential...
-
Explain how a taxable gain on property can be realized because of a casualty event such as a fire or theft. How are these gains treated?
-
Why was the profitability index particularly helpful under capital rationing? Explain
-
Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page. Income Statements Year Ended December 31, 2012 2011 Sales 8000 5000 Cost...
-
Crane Corporation produces wooden and aluminum baseball bats. In preparing the current budget, Crane's management estimated a total of $ 5 4 0 , 0 0 0 in manufacturing overhead costs and 1 8 , 0 0 0...
-
Division A Division B Division C Sales $ 1 2 , 5 6 0 , 0 0 0 $ 3 5 , 7 0 0 , 0 0 0 $ 2 0 , 5 6 0 , 0 0 0 Average operating assets $ 3 , 1 4 0 , 0 0 0 $ 7 , 1 4 0 , 0 0 0 $ 5 , 1 4 0 , 0 0 0 Net...
-
What is the correlation between stocks? How does correlation play a part of portfolio construction? 3. Compute the "beta" for each stock. What does beta measure? (Use SPY as the measurement of the...
-
The stepped merge variant of the LSM tree allows multiple trees per level. What are the tradeoffs in having more trees per level?
-
Prove that if Σ an is absolutely convergent, then a. an
-
The following independent situations require professional judgment for determining when to recognize revenue from the transactions. (a) Southwest Airlines sells you an advance-purchase airline ticket...
-
These are the assumptions, principles, and constraints discussed in this and previous chapters. 1. Economic entity assumption. 2. Expense recognition principle. 3. Monetary unit assumption. 4....
-
Here are some accounting reporting situations. (a) Dorfner Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be...
-
ABC Hospital is one of two hospitals in the community. The Hospital offers all major specialty services (e.g. cardiology, neurology, pulmonology, etc.) The Hospital is approached by a cardiologist...
-
You obtained job-related information about the HR assistant position from O*Net. Answer the following sections based on that information. QUESTIONS: The following is the list of questions included in...
-
On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $27,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries...
Study smarter with the SolutionInn App