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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.
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