Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 Silver Clothiers reported the following selected items at April 3 0 , 2 0 2 0 ( previous year s 2 0 1 9

6 Silver Clothiers reported the following selected items at April 30,2020(previous
years2019amounts also given as needed):
Accounts Payable .................... $ 328,000 Accounts Receivable, net
Cash........................................... 573,720 April 30,2020.................... $ 11,000
Inventory April 30,2019....................165,000
April 30,2020.......................250,000 Cost of Goods Sold............... 1,200,000
April 30,2019.......................210,000 Short-term Investments....... 148,000
Net Credit Sales Revenue....... 3,212,000 Other Current Assets ...........100,000
Long-term Assets ....................350,000 Other Current Liabilities .....188,000
Long-term Liabilities ..............130,000
Compute Silvers (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c)
days sales in receivables (using the turnover ratio) for the year ending April 30,2020.
Evaluate each ratio value as strong or weak. Silver sells on terms of net 30.(Round
days sales in receivables to a whole number.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions

Question

1. Encourage students to set a small-step goal for one subject.

Answered: 1 week ago

Question

1. Discuss the latest research and infromation about VR headsets.

Answered: 1 week ago