Question
Current Assets: 2015 2014 Cash $180,000 $200,000 Accounts receivable, net of allowance for uncollectible accounts of $35,000 and $25,000 220,000 180,000 Inventory 50,000 40,000 Current
| Current Assets: | 2015 | 2014 |
| Cash | $180,000 | $200,000 |
| Accounts receivable, net of allowance for uncollectible accounts of $35,000 and $25,000 | 220,000 | 180,000 |
| Inventory | 50,000 | 40,000 |
| Current liabilities | $320,000 | $320,000 |
1) Compute the acid-test ratio for the Heely Equipment Sales for 2015 and 2014. Compare the ratio for the two years.
2) Compute the days' sales in receivables if net sales were $3,650,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting For Governmental And Nonprofit Entities
Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely
19th Edition
1260118851, 9781260118858
