Cash 40,000 Accounts Receivables 55,000 Inventories 50,000 Supplies 35,000 Notes payable (Long term) 80,000 Accounts payable 60,000
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Question:
Cash
40,000
Accounts Receivables
55,000
Inventories
50,000
Supplies
35,000
Notes payable (Long term)
80,000
Accounts payable
60,000
Wages payable
40,000
Calculate and Analyze the Current Ratio and Quick Ratio for the company for 2016. If the Industry norms for Current Ratio (2.0) and Quick ratio (1.0), analyse the company ratios are favourable or unfavourable. (6 marks)
2. Credit revenue from operations $560,000; Debtors $70,000; cash $10,000. Average Collection Period is _________ (2 marks)
3. Cash Balance $15,000; Trade Receivables $35,000; Inventory $40,000; Trade Payables $24,000 and Bank Overdraft is $6,000. Current Ratio will be
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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