The comparative financial statements of Perfection Cosmetic Supply for 2014, 2013, and 2012 include the data shown

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The comparative financial statements of Perfection Cosmetic Supply for 2014, 2013, and 2012 include the data shown here:

The comparative financial statements of Perfection Cosmetic Supply for 2014,


Requirements

1. Compute these ratios for 2014 and 2013:

a. Acid-test ratio (Round to two decimals.)

b. Accounts receivable turnover (Round to two decimals.)

c. Days' sales in receivables (Round to the nearest whole dollar.)

2. Considering each ratio individually, which ratios improved from 2013 to 2014 and which ratios deteriorated? Is the trend favorable or unfavorable for 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...
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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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