Evaluate each ratio value as strong or weak

Reference no: EM131819425

Question: Using the acid-test ratio, accounts receivable turnover ratio, and days' sales in receivables to evaluate a company Lantana Clothiers reported the following selected items at May 31, 2016 (last year's-2015-amounts also given as needed):

Compute Lantana's

(a) acid-test ratio,

(b) accounts receivable turnover ratio, and

Evaluate each ratio value as strong or weak. Lantana sells on terms of net 30. (Round days' sales in receivables to a whole number.)

Reference no: EM131819425

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