CHECKPOINT

The following information is from the December $31,2020$ balance sheet of Westfield Sports Cor

cash, $$820,000$; accounts receivable, $$240,000$; inventories, $$470,000$; PPE assets, $$910,000$;

accounts payable, $$350,000$; and income taxes payable, $$180,000.$ Calculate the $($a$)$ current ratic

and $($b$)$ qu

On December $31,2020,$ Westfield Sports Corp. $($in Checkpoint $9)$ had accounts receivable of

$$290,000$ and inventories of $$530,000.$ During $2020,$ net sales amounted to $$2,500,000$ and

cost of goods sold was $$750,000.$ Calculate the $($a$)$ accounts receivable turnover, $($b$)$ days' sales

uncollected, $($c$)$ inventory turnover, and $($d$)$ days' sales in inventory.

Do Quick Study questions: QS $17-7$ to QS $17-14$

LVENCY

vency refers to a company's long$-$run financial viability and its ability to cover long$-$term obligations.

siness activities of a company$-$financing, investing, and operating$-$affect a company's solvency. One