Cox's, a department store, reported the following amounts in its 19X8 financial statements. The 19X7 figures are

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Cox's, a department store, reported the following amounts in its 19X8 financial statements. The 19X7 figures are given for comparison.

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1. Determine whether the acid-test ratio improved or deteriorated from \(19 \mathrm{X} 7\) to \(19 \mathrm{X} 8\). How does Cox's acid-test ratio compare with the industry average of 0.80 ?
2. Compare the days' sales in receivables measure for \(19 \mathrm{X} 8\) with the company's credit terms of net 30 .

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Financial Accounting

ISBN: 9780133118209

2nd Edition

Authors: Charles T. Horngren, Jr. Harrison, Walter T.

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