In addition to the information from S12-6, assume that cash on the 2018 balance sheet was $14,000
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In addition to the information from S12-6, assume that cash on the 2018 balance sheet was $14,000 and current liabilities totaled $25,000. Compute the following ratios for 2018:
1. Current ratio
2. Quick ratio
3. Cash conversion cycle (round to whole days)
Cash Conversion CycleCash 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,... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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1 Current ratio 2 Quick ratio 3 Cash conversion cycle Dayss...View the full answer
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