The comparative financial statements of Appleway Flowers, Inc. for $2018,2017,$ and $2016$ include the following selected$$ data:

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Part $1$

Requirement $1$a$.$ Compute the quick ratio for $2018$ and $2017.$

Start by selecting the$$ formula, then enter the amounts to calculate the ratios. $($Round your final answer to two decimal places. Abbreviation$$ used: ST invest$=$ short$-$term$$ investments.$)$

$/$

$=$

Quick ratio

Part $2$

$2018$

$/$

$=$

$2017$

$/$

$=$

Part $3$

Requirement $1$b$.$ Compute the current ratio for $2018$ and $2017.$

Start by selecting the$$ formula, then enter the amounts to calculate the ratios. $($Round your final answer to two decimal$$ places.$)$

$/$

$=$

Current ratio

Part $4$

$2018$

$/$

$=$

$2017$

$/$

$=$

Part $5$

Requirement $1$c$.$ Compute the accounts receivable turnover for $2018$ and $2017.$ Assume all sales are credit sales.

Start by selecting the$$ formula, then enter the amounts to calculate the turnover. $($Round your final answer to two decimal places. Abbreviation$$ used: AR turnover$=$ accounts receivable$$ turnover.$)$

$/$

$=$

AR Turnover

Part $6$

$2018$

$/$

$=$

$2017$

$/$

$=$

Part $7$

Requirement $1$d$.$ Compute the receivable collection period. Assume all sales are credit sales. Use $365$ days.

Start by selecting the$$ formula, then enter the amounts to calculate the collection periods. $($Round all intermediary computations and your final answer to the nearest whole$$ number.$)$

Receivable

$/$

$=$

collection period

Part $8$

$2018$

$/$

$=$

days

$2017$

$/$

$=$

days

Part $9$

Requirement $2.$ Write a memo explaining to the company owner which ratios improved from $2017$ to $2018,$ which ratios$$ deteriorated, and which items in the financial statements changed and caused changes in some ratios. Discuss whether this change conveys a favorable or an unfavorable impression about the company.

TO:

Appleway Flowers, Inc. Restaurants

FROM:

Your name

RE:

Ratio analysis

The

$$

decrease

increase

in the quick ratio from $2017$ to $2018$ was largely due to the

$$

decrease in short$-$term investments.

decrease in total current liabilities.

increase in average receivables.

increase in cash.

increase in sales.

This change conveys

$$

a favorable

an unfavorable

impression about the company as it means that the business has

$$

of an ability to pay all if its

$$

current assets

current liabilities

total assets

total liabilities

immediately.

Part $10$

The

$$

decrease

increase

in the current ratio from $2017$ to $2018$ was largely due to the

$$

decrease in total current assets.

increase in average receivables.

increase in cash.

increase in sales.

This change conveys

$$

a favorable

an unfavorable

impression about the company as it means that the business has

$$

less

more

liquidity in $2018$ than in $2017.$

Part $11$

The

$$

decrease

increase

in the accounts receivable turnover from $2017$ to $2018$ was largely due to the

$$

decrease in average receivables.

decrease in sales revenue.

decrease in short$-$term investments.

decrease in total current liabilities.

increase in cash.

increase in inventory.

This change conveys

$$

a favorable

an unfavorable

impression about the company as it means that the business appears to be$$

$$

collecting cash from its customers with more ease than in the prior year.

having trouble collecting cash from customers.

Part $12$

The

$$

decrease

increase

in the receivable collection period from $2017$ to $2018$ was largely due to the

$$

decrease in average receivables.

decrease in sales revenue.

decrease in short$-$term investments.

decrease in total current liabilities.

increase in cash.

increase in inventory.

This change conveys

$$

a favorable

an unfavorable

impression about the company as it means that the business appears to be

$$

collecting cash from its customers with more ease than in the prior year.

having trouble collecting cash from customers.