Silver Clothiers reported the following selected items at April 30, 2018 (last year's-2017-amounts also given as needed):

Compute Silver's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending April 30, 2018. Evaluate each ratio value as strong or weak. Silver sells on terms of net 30. (Round days' sales in receivables to a whole number.)
 

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Accounts Payable $ 328,000 Accounts Receivable, net: Cash 573,720 April 30, 2018 $ 11,000 Merchandise Inventory: April 30, 2017 165,000 April 30, 2018 250,000 Cost of Goods Sold 1,200,000 April 30, 2017 210,000 Short-term Investments 148,000 Net Credit Sales Revenue 3,212,000 Other Current Assets 100,000 Long-term Assets 350,000 Other Current Liabilities 188,000 Long-term Liabilities 130,000 Accounts Payable $ 328,000 Accounts Receivable, net: Cash 573,720 April 30, 2018 $ 11,000 Merchandise Inventory: April 30, 2017 165,000 April 30, 2018 250,000 Cost of Goods Sold 1,200,000 April 30, 2017 210,000 Short-term Investments 148,000 Net Credit Sales Revenue 3,212,000 Other Current Assets 100,000 Long-term Assets 350,000 Other Current Liabilities 188,000 Long-term Liabilities 130,000

Answer rating: 100% (QA)

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