The comparative financial statements of ODohertys Irish Grille for 2016, 2015, and 2014 include the following selected

Question:

The comparative financial statements of O’Doherty’s Irish Grille for 2016, 2015, and 2014 include the following selected data:

2015 2016 2014 Balance Sheet Current Assets: $ 6,700 $ 8,000 $ 6,100 25,000 Cash Short-term Investments 13,300 31,200 12

Requirements
1. Compute these ratios for 2016 and 2015:
a. Quick ratio
b. Current ratio
c. Accounts receivable turnover; assume all sales are credit sales
d. Receivable collection period; assume all sales are credit sales and use 365 days
2. Write a memo explaining to the company owner which ratios improved from 2015 to 2016, 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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

Question Posted: