Algonquin Equipment reported the following items on November 30, 2010 (amounts in thousands, with last year’s amounts also given as needed):

Requirements 1. Compute Algonquin Equipment’s

(a) quick ratio and

(b) accounts receivable turnover for 2010.
2. Evaluate each ratio value as strong or weak. Assume Algonquin Equipment sells on terms of net 30.

Transcribed Image Text:

Accounts Payable... Cash... $ 434 Accounts Receivable, Net: 210 November 30, 2010 200 Inventory: November 30, 2009 110 November 30, 2010 170 Cost of Goods Sold. 800 November 30, 2009. 130 Short-term Investments. 170 Net Credit Sales 2,450 Other Current Assets. 30 Long-term Assets Long-term Liabilities. 410 Other Current Liabilities. 170 60