Holex HealthCare C. were found Dec. 31. Do as directed. Cash 10,000 Equipment 50,000 Marketable Securities 20,000 Accounts Receivable 15,000 Allowance for bad debts 1,000 Accumulated depreciation 5,000 Long-term Investments 20,000 Net Income after Tax 40,000 Notes Payable 23,000 Accrued Expenses 7,000 Net Sales 100,000 Merchandise 8,000 Cost of goods sold 50,000 Part 1: Compute the following: {1} Current Ratio {2} Quick Ratio {3} Accounts Receivable Turnover using average (Beginning Accounts Receivable was P10,000 while Allowance for Bad Debts was P3,000) {4} Asset Turnover {5} Fixed Asset Turnover {6} Return on Assets {7} Inventory Turnover using average (Beginning Inventory was P15,000) {8} Days’ sales {9} Average collection period using average receivables

 Part 2: Answer the following based on the above data. Use the back page if spaces are not enough. 

1) How do you assess the firm’s collection skills if its credit term is n/60?

 2) How liquid is the firm? 

3) How do you assess its asset management? 

4) Should the company improve on its sales strategy? Why? 

5) How do you assess its profitability rate if industry rate is 50%?  

Answer rating: 100% (QA)

Answer 1 Current Ratio Current Assets Current Liabilities 10000 50000 20000 15000 1000 23000 7000 86000 30000 28 2 Quick Ratio Current Assets Inventories Current Liabilities 10000 50000 20000 15000 10... View the full answer