The comparative financial statements of Appleway Flowers, Inc., for 2018, 2017, and 2016 include the following selected

Question:

The comparative financial statements of Appleway Flowers, Inc., for 2018, 2017, and 2016 include the following selected data:

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Requirements

1. Compute these ratios for 2018 and 2017:

a. Quick ratio

b. Current ratio

c. Accounts receivable turnover (assume all sales are credit sales)

d. Receivable collection period (use 365 days)

2. Write a memo explaining to the company owner which ratios improved from 2017 to 2018, which ratios deteriorated, and which items in the financial statements changed and caused changes in some ratios. Discuss whether this change conveys a favorable or an unfavorable impression about the company.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134727790

5th edition

Authors: Robert Kemp, Jeffrey Waybright

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