In addition to the information from S12-6, assume that cash on the 2012 balance sheet was $25,000

Question:

In addition to the information from S12-6, assume that cash on the 2012 balance sheet was $25,000 and current liabilities totaled $20,000. Compute the following ratios for 2012:
In S12-6, The 2011 and 2012 balance sheets for Victor and Sons showed net of $12,000 and $16,000, respectively, inventory of $9,000 and $7,000, respectively, and of $6,500 and $7,500, respectively. The company’s 2012 income statement showed net sales of $102,200 and cost of goods sold of $72,270.

1. Current ratio
2. Quick ratio
3.

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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...