Complete the homework assignment using the Excel template.Ensure your work is organized, properly labeled, and highlight your final answer. Written responses must adhere to APA format.

Assignment is attached.

P 6-2 Hawk Company wants to determine the liquidity of its receivables. It has supplied you with the following data regarding selected accounts for December 31, 2011, and 2010: 2011 Net sales 2010 $1,180,1 $2,200,0 78 00 Receivables, less allowance for losses and discounts Beginning of year (allowance for losses and discounts, 2011$12,300; 2010$7,180) 240,360 230,180 End of year (allowance for losses and discounts, 2011$11,180; 2010$12,300) 220,385 240,360 4 4 4 4 Required a. Compute the number of days' sales in receivables at December 31, 2011, and 2010. b. Compute the accounts receivable turnover for 2011 and 2010. (Use year-end gross receivables.) c. Comment on the liquidity of Hawk Company receivables. P 6-6 J. Shaffer Company has an ending inventory of $360,500 and a cost of goods sold for the year of $2,100,000. It has used LIFO inventory for a number of years because of persistent inflation. Required a. Compute the days' sales in inventory. b. Is J. Shaffer Company's days' sales in inventory as computed realistic in comparison with the actual days' sales in inventory? c. Would the days' sales in inventory computed for J. Shaffer Company be a helpful guide? P 6-15 The following financial data were taken from the annual financial statements of Smith Corporation: 2009 2010 2011 Current assets $ 450,000 $ 400,000 $ 500,000 Current liabilities 390,000 300,000 340,000 Sales 1,450,000 1,500,000 1,400,000 Cost of goods sold 1,180,000 1,020,000 1,120,000 Inventory 280,000 200,000 250,000 Accounts receivable 120,000 110,000 105,000 Required 4 a. Based on these data, calculate the following for 2010 and 2011: 1 1. Working capital 2 2. Current ratio 3 3. Acid-test ratio 4 4. Accounts receivable turnover 5 5. Merchandise inventory turnover 6 6. Inventory turnover in days b. Evaluate the results of your computations in regard to the short-term liquidity of the firm. P 6-17 The following data relate to inventory for the year ended December 31, 2011: Cost per Date Description Number of Units Total Cost Unit Beginning $ January 1 400 $5.00 inventory 2,000 March 1 Purchase 1,000 6.00 6,000 August 1 Purchase 200 7.00 1,400 November Purchase 1 200 1,800 4 4 4 4 7.50 1,500 $10,900 A physical inventory on December 31, 2011, indicates that 400 units are on hand and that they came from the March 1 purchase. Required Compute the cost of goods sold for the year ended December 31, 2011, and the ending inventory under the following cost assumptions: a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Average cost (weighted average) d. Specific identification Q 7-1 Is profitability important to a firm's long-term debt- paying ability? Discuss Q 7-4 Would you expect an auto manufacturer to finance a relatively high proportion of its long-term funds from debt? Discuss. Q 7-9 Is it feasible to get a precise measurement of the funds that could be available from long-term assets to pay long-term debts? Discuss