Compute current ratio quick ratio and receivables turnover

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Reference no: EM13913978

Accounting Connection- Partial comparative balance sheet and income state- ment information for Posad Company follows.

	2014	2013
Cash	$ 13,600	$ 10,400
Marketable securities	7,200	17,200
Accounts receivable (net)	44,800	35,600
Inventory	54,400	49,600
Total current assets	$120,000	$112,800
Accounts payable	$ 40,000	$ 28,200
Net sales	$322,560	$220,720
Cost of goods sold	217,600	203,360
Gross margin	$104,960	$ 17,360

In 2012, the year-end balances for Accounts Receivable and Inventory were $32,400 and $51,200, respectively. Accounts Payable was $30,600 in 2012 and is the only current liability. Compute the current ratio, quick ratio, receivables turnover, days' sales uncollected, inventory turnover, days' inventory on hand, payables turnover, days' payable for each year, and financing period. (Round to one decimal place.) Comment on the change in the company's liquidity position, including its operating cycle and required days of financing from 2013 to 2014.

Reference no: EM13913978

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