Cherokee Equipment reported the following items on December 31, 2012 (amounts in thousands, with last years amounts

Cherokee Equipment reported the following items on December 31, 2012 (amounts in thousands, with last year’s amounts also given as needed):

Requirements
1. Compute Cherokee Equipment’s
(a) Quick ratio,
(b) Current ratio, and
(c) Accounts receivable turnover for 2012.
2. Evaluate each ratio value as strong or weak. Assume Cherokee Equipment sells on terms of net30.

Transcribed Image Text:

Accounts Paya b Cash 450 Accounts Receivable, Net S 250 December 31, 2012 December 31, 2011. 220 Inventory December 31, 2012200 Cost of Goods Sold December 31, 2011.. Net Credit Sales Long-term Assets Long-term Liabilities 1,100 168 60 130 1,911 Other Current Assets... 10