Southside Clothiers reported the following items at September 30, 2012 (last years2011amounts also given as needed): Requirement
Question:
Requirement
1. Compute Southsides
(a) Acid-test ratio,
(b) Days sales in average receivables for 2012, and
(c) Accounts receivable turnover ratio. Evaluate each ratio value as strong or weak. Southside sells on terms of net30.
Transcribed Image Text:
Accounts payable $ 320,000 Accounts receivable, net: September 30, 2012 $ 270,000 Cash Inventories September 30, 2012 September 30, 2011 Net sales revenue September 30, 2011 290,000 Cost of goods sold 200,000 Short-term investments Other current assets 420,000 Other current liabilities 1,150,000 140,000 120,000 180,000 Long-term assets Long-term liabilities 130,000
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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