Cherokee Equipment reported the following items on December 31, 2018 (last year's amounts are also given as needed): In (Click the icon to view the financial Information) Requirements 1. Compute Cherokee Equipment's (a) quick ratio, (b) current ratio, and (c) accounts receivable turnover for 2018. 2. Evaluate each ratio value as strong or weak. Assume Cherokee Equipment sells on terms of net 30 - X - Data table uick ratio es, X.XX. Ab $ 48,000 20,000 $ 32,000 --- 28,000 rrent rati Accounts receivable, net: December 31, 2018 December 31, 2017 Cost of goods sold Short-term investments Other current assets 16,000 140,000 Accounts payable Cash Inventory December 31, 2018 December 31, 2017 Net credit sales Long-term assets Long-term liabilities boes, XXX.) 12.000 11,000 260,000 5,000 counts ro 46,000 Other current liabilities 18.500 two decimo 11,000 Requirement 1a. Compute Cherokee Equipment's quick ratio for 2018. Select the formula, then enter the amounts to calculate the ratio (Roun investment.) Quick ratio Requirement 1b. Compute Cherokee Equipment's current ratio for 2018. Select the formula, then enter the amounts to calculate the ratio (Rou Current ratio Requirement 10. Computo Cherokee Equipment's accounts receivable turnover for 2018. Select the formula, then enter the amounts to calculat receivable.) AR Turnover Requirement 2. Evaluate each ratio value as strong or weak. Assume Cherokee Equipment sels on terms of net 30. The quick ratio is in 2018. It tells us that Cherokee has The current ratio is in 2018. It tells us that Cherokee has Evaluate the accounts receivable turnover for 2018. (To calculate the average number of days it takes to collect accounts receivable, use an AR the nearest whole number.) Requirement 1c. Compute Cherokee Equipment's accounts receivable turnover for 2018. Select the formula, then enter the amounts to calculate the ratio. (Round receivable AR Turnover Requirement 2. Evaluate each ratio value as strong or weak. Assume Cherokee Equipment sets on terms of net 30 The quick ratio is in 2018. It tells us that Cherokee has The current ratio is in 2018. It tells us that Cherokee has Evaluato the accounts receivable turnover for 2018. (To calculate the werage rumber of days to to collect accounts receivable, use an AR tumover ratio to tu ( the nearest whole number.) The accounts receviable tumover ratio indicates that it takes the company, on average days to collect its average level of receivables. Thus, the accounts receivable turnover ratio appears since it takes the company, on average to collect from customers than its 30-day credit terms low
