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

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

Requirements
1. Compute Seminole 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 Seminole Equipment sells on terms of net30.

Transcribed Image Text:

Accounts Payable.. S 370 Accounts Receivable, Net: Cash. Inventory: 120 July 31, 2012300 July 31, 2012 July 31, 2011 200 1,140 140 Short-term Investments.100 July 31,2011 Cost of Goods Sold 150 ..1 Net Credit Sales. 350 20 30 Long-term Liabilities