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ABC COMPANY SELECTED FINANCIAL INFORMATION 2017, 2016, 2015 2017 2016 2015 Current assets 950,000 850,000 800,000 Current liabilities 525,000 450,000 500,000 Cash 210,000 260,000 245,000
| ABC COMPANY | ||||
| SELECTED FINANCIAL INFORMATION | ||||
| 2017, 2016, 2015 | ||||
| 2017 | 2016 | 2015 | ||
| Current assets | 950,000 | 850,000 | 800,000 | |
| Current liabilities | 525,000 | 450,000 | 500,000 | |
| Cash | 210,000 | 260,000 | 245,000 | |
| Marketable securities | 105,000 | 85,000 | 75,000 | |
| Inventory | 375,000 | 275,000 | 325,000 | |
| Sales | 1,850,000 | 2,100,000 | 1,750,000 | |
| Cost of Goods Sold | 1,250,000 | 1,450,000 | 1,250,000 | |
| Assume: | ||||
| 1. ABC's current assets are comprised of cash, accounts receivable, marketable securities and inventory | ||||
| at the end of each year. | ||||
| 2. 10% of sales are for cash; the remainder of sales are on credit. | ||||
| Requirements: | ||||
| Calculate each of the following measures for 2017 and 2016. | ||||
| 2017 | 2016 | |||
| a. Working capital (10 points) | ||||
| b. Current ratio (10 points) | ||||
| c. Quick (Acid Test) ratio (10 points) | ||||
| d. Inventory turnover (10 points) | ||||
| e. Days sales outstanding in receivables (10 points) | ||||
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
