Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below. CULLUMBER INC. Balance Sheet (partial) December 31 (in

image text in transcribedimage text in transcribed

Cullumber Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below. CULLUMBER INC. Balance Sheet (partial) December 31 (in millions) 2024 2023 2022 Current assets Cash $739 $90 $59 Short-term investments 57 58 40 Accounts receivable 680 581 495 Inventory 900 523 573 Prepaid expenses 45 52 26 Total current assets $2,421 $1.304 $1,193 Total current liabilities $1,885 $822 $747 Additional information: (in millions) 2024 2023 Net credit sales $8.256 $3,938 Cost of goods sold 5,328 2,646 Additional information: (in millions) 2024 2023 Net credit sales $8,256 $3,938 Cost of goods sold 5,328 2,646 (a) Calculate the following liquidity ratios for 2024 and 2023. (Round current ratio and acid-test ratio to 2 decimal places, e.g. 0.75:1, receivables turnover and inventory turnover to 1 decimal place, e.g. 52.7 and collection period, days sales in inventory and operating cyc to O decimal places, e.g. 125.) Current ratio Acid-test ratio Receivables turnover 2024 :1 :1 times 2023 :1 :1 times Collection period days days Inventory turnover times times Days sales in inventory days days Operating cycle days days

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

Step: 3

blur-text-image

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

Accounting for Non-Accounting Students

Authors: John R. Dyson

8th Edition

273722972, 978-0273722977

More Books

Students also viewed these Accounting questions

Question

How do firms develop innovations internally? Discuss.

Answered: 1 week ago

Question

Quadrilateral EFGH is a kite. Find mG. E H Answered: 1 week ago

Answered: 1 week ago