Partial comparative balance sheet and income statement information for Smith Company is as follows: In 2009, the

Question:

Partial comparative balance sheet and income statement information for Smith Company is as follows:

2011 2010 $ 27,200 $ 20,800 34,400 Cash Markctable securitics 14,400 89,600 108,800 $240,000 $ 80,000 $645,120 435,200 $

In 2009, the year-end balances for Accounts Receivable and Inventory were $64,800 and $102,400, respectively. Accounts Payable was $61,200 in 2009 and is the only current liability. Compute the current ratio, quick ratio, receivable turnover, days’ sales uncollected, inventory turnover, days’ inventory on hand, payables turnover, and days’ payable for each year. (Round computations to one decimal place.) Comment on the change in the company’s liquidity position.

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... 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...