Assume Black Corporation reported the following items at year-ends 2017 and 2016. Requirements 1. Compute Black's (a)

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Assume Black Corporation reported the following items at year-ends 2017 and 2016.

Assume Black Corporation reported the following items at year-ends 2017

Requirements
1. Compute Black's (a) acid-test ratio and (b) days' sales in average receivables for 2017.
Evaluate each ratio value as strong or weak. Assume Black sells on terms of net 30 days.
2. Recommend two ways the company can speed up its cash flow.

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Financial Accounting

ISBN: 978-0134564142

6th Canadian edition

Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin

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