Solution-Compute the acid-test ratio for the heely

Compute the acid-test ratio for the heely equipment sales

Reference no: EM131790803

Problem

Current Assets:	2015	2014
Cash	$180,000	$200,000
Accounts receivable, net of allowance for uncollectible accounts of $35,000 and $25,000	220,000	180,000
Inventory	50,000	40,000
Current liabilities	$320,000	$320,000

1) Compute the acid-test ratio for the Heely Equipment Sales for 2015 and 2014. Compare the ratio for the two years.

2) Compute the days' sales in receivables if net sales were $3,650,000.

Reference no: EM131790803

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Compute the acid-test ratio for the heely equipment sales

Reference no: EM131790803

Reference no: EM131790803

Questions Cloud

Reviews

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Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

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