Limited Review of the Akins Income Statement shows 100,000 of Net Sales for the Year 2017...

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Limited Review of the Akins Income Statement shows 100,000 of Net Sales for the Year 2017 and Net Income of 12,000. The terms for Sales and Purchases are 2/10, n/30. Partial Comparative Balance Sheets for the Akins Corporation appear below: (In Thousands) (In Thousands) 2017 2016 Cash $ 3,000 $15,000 Marketable Securities 9,000 5,000 Accounts Receivable 25,000 15,000 23,000 17,000 Inventory Equipment (At Book Value) 60,000 55,000 Land 20,000 15,000 Patents 50.000 50,000 Total Assets $190,000 $172,000 Current Liabilities 10,000 30,000 Long Term Liabilities Total Liabilities 70.000 100,000 75,000 85,000 a) Compute the current ratio for 2017 b) Compute the accounts receivable turnover ratio for 2017 c) Compute the average days uncollected for 2017 and provide observation. Limited Review of the Akins Income Statement shows 100,000 of Net Sales for the Year 2017 and Net Income of 12,000. The terms for Sales and Purchases are 2/10, n/30. Partial Comparative Balance Sheets for the Akins Corporation appear below: (In Thousands) (In Thousands) 2017 2016 Cash $ 3,000 $15,000 Marketable Securities 9,000 5,000 Accounts Receivable 25,000 15,000 23,000 17,000 Inventory Equipment (At Book Value) 60,000 55,000 Land 20,000 15,000 Patents 50.000 50,000 Total Assets $190,000 $172,000 Current Liabilities 10,000 30,000 Long Term Liabilities Total Liabilities 70.000 100,000 75,000 85,000 a) Compute the current ratio for 2017 b) Compute the accounts receivable turnover ratio for 2017 c) Compute the average days uncollected for 2017 and provide observation.

Answer rating: 100% (QA)

aCurrent ratio Current AssetsCurrent Liabilities Current Assets of 2017 Cas... View the full answer