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Question - Selected data for Stick's Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth).
Year 2
Year 1
Net Credit Sales
$25,000
$30,000
Cost of Goods Sold
18,000
Net Income
2,000
2,800
Cash
5,000
900
Accounts Receivable
3,000
Inventory
3,600
Current Liabilities
6,000
Compute the following:
(1) Current ratio for Year 2.
(2) Acid-test ratio for Year 2.
(3) Accounts receivable turnover for Year 2.
(4) Average collection period for Year 2.
(5) Inventory turnover for Year 2.
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