Question: Comanche Carpets reported the following amounts in its 2 0 2 5 financial statements. The 2 0 2 4 figures are given for comparison. View

 Comanche Carpets reported the following amounts in its 2025 financial statements.

Comanche Carpets reported the following amounts in its 2025 financial statements. The 2024 figures are given for comparison.
View the comparative financial information.
Read the requirements.
Requirement 1. Calculate Comanche Carpets' acid-test ratio for 2025.(Round to two decimals.) Determine whether Comanche Carpets' acid-test ratio improved or deteriorated from 2024 to 2025. How does Comanche Carpets' acid-tes of 0.80?(Abbreviations used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratio to two decimals, X.XX.)
Calculate the acid-test ratio for both years.
\table[[,(Cash + ST invest + Net current receivables),Total current liabilities,Acid-test ratio],[2025,82000,107000,0.77],[2024,91000,109000,]]
The acid-test ratio deteriorated from 2024 to 2025. The company's acid-test ratio is a little worse than the industry average of 0.80.
Requirement 2. Calculate Comanche Carpets' accounts receivable turnover ratio for 2025.(Round to two decimals.) How does Comanche Carpets' ratio compare to the industry average accounts receivable turnover of 10?(Abbreviations 4 turnover ratio; Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.)
The company's accounts receivable turnover ratio is the industry average of 10
Requirement 3. Calculate the days' sales in receivables for 2025. Round to the nearest day.) How do the results compare with Comanche Carpets' credit terms of net 30?(Abbreviations used. Cash = Cash including cash equivalents; ST inve interim calculations to two decimals, x.xx, and the days in receivables to the nearest whole day.)
= Days' sales in AR
2025=
Comanche Carpets' days' sales in receivables calculation is the company's net 30-day credit period
The 2024 figures are given for comparison. View the comparative financial information.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!