Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The

Question:

Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was $38,200.

REQUIRED

Prepare the following financial ratios:

(a) Working capital

(b) Current ratio

(d) Return on owner’s equity

(e) Accounts receivable turnover and the average number of days required to collect receivables

(f) Inventory turnover and the average number of days required to sell inventory

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...