Compute the current ratio and quick ratio

Assignment Help Cost Accounting

Reference no: EM13215069

The 2007 and 2008 balance sheets for Alan Jack and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. Their 2008 income statement showed net sales of $109,500 and cost of goods sold of $70,000. Compute the following ratios for 2008:
1. Accounts receivable turnover.
2. Days' sales in receivables.
3. Inventory turnover.

In addition to the information from the answers on L9A1, assume that cash on the 2008 balance sheet was $20,000 and current liabilities totaled $24,000. Compute the following ratios for 2008:
1. Current ratio.
2. Quick ratio.

Reference no: EM13215069

Questions Cloud

What are the main factor might influence productivity : why is growth in average labor productivity viewed as a key factor in determining long-run living standards?

Weighing yourself on the scale : Weighing yourself on the scale only gives you limited information about your health. Explain why. How might you obtain more accurate information?

Explain the effects of the increase in global demand : Explain the effects of the increase in global demand for cell phones on the market for cell phones and on an individual cell-phone producer in the short run.

Moderate intensity activity : What is the predominant fuel used my muscle cells during low- or moderate intensity activity?

Compute the current ratio and quick ratio : The 2007 and 2008 balance sheets for Alan Jack and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. Their 2008 income statement showed net sales of $109,500 and cost of goo..

Explain the means of transmission : Nine children attending the same day care center developed red, inflamed eyes and eyelids within the same week. What is the most likely cause? Name this condition. Explain the means of transmission.

Consumer complaint in the state of texas : "Your assignment is to find out how to do six things at some level of government-state, county, city, school district, special district, institution of higher learning, etc.

How to prepare journal entry to record paynes income taxes : At the end of 2013, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2013 is $180 million and the tax rate is 40%.

How do you report child abuse in the state of texas : Your assignment is to find out how to do six things at some level of government-state, county, city, school district, special district, institution of higher learning, etc.

User Account

All Pages