Assume Black Corporation reported the following items at year-ends 2017 and 2016. Requirements 1. Compute Black's (a)
Question:
Assume Black Corporation reported the following items at year-ends 2017 and 2016.
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.
Transcribed Image Text:
Black Corporation Consolidated Balance Sheets March 1,March 3, March 1, March 3, (Summarized) 2017 2016 2017 2016 2 (amounts in millions) 3 Current assets: Current liabilities $1,184.4 $ 677.1 Accounts Short-term investments Accounts receivable, net $ 271.1 130.3 416.3 58.8 310.1 572.6 Long-term liabilities 255.9 103.6 Shareholders' equity Other current liabilities 420.7 1,174.7 396.3 301.3 1,203.3 103.2 Other current assets 3,933.62,483.5 9 Capital assets 2,033.81,169.6 5,511.2 $3,088.9 Total liabilities and equit 10 Total assets 11 Income Statement (partial): 2017 12 Revenue 13 5,511.2 $3,088.9 6,009.4
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Related Book For
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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