P5-69A. (Learning Objective 5: Using ratio data to evaluate a companys financial position) The comparative financial statements

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P5-69A. (Learning Objective 5: Using ratio data to evaluate a company’s financial position)

The comparative financial statements of Highland Pools, Inc., for 20X7, 20X6, and 20X5 included the following select data:

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Requirements 1. Compute current ratio and days’ sales in receivables for 20X7 and 20X6:
2. Which ratio(s) improved from 20X6 to 20X7 and which ratio(s) deteriorated? Is this trend favorable or unfavorable?

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Financial Accounting International Financial Reporting Standards Global Edition

ISBN: 9781292211145

11th Edition

Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison

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