Answered step by step
Verified Expert Solution
Question
1 Approved Answer
eBook Problem 9-16 Aim't balance sheets for the last two years are as follows: YEAR 20X1 Assets Cash $ 22,000 Accounts receivable 13,000 Tnventory 15,000
eBook Problem 9-16 Aim't balance sheets for the last two years are as follows: YEAR 20X1 Assets Cash $ 22,000 Accounts receivable 13,000 Tnventory 15,000 plant and equipment 100,000 Liabilities and Equity Accounts payable $ 15,000 Accruals 5,000 Current bank note 3,000 Long-term debt 32,000 Common stock 15,000 Retained earnings 25.000 $150,000 $150.000 YEAR 20X2 Assets Cash $ 19,000 Accounts recevable 16.000 Inventory 15,000 Plant and equipment 100.000 Liabilities and Equity Accounts payable $ 13,000 Accruals 16,000 Current banknote 9,000 Long-term debt 68,000 Common stock 15,000 Retained earnings 29.000 $150.000 $150,000 Sales in 20x1 were $170,000. Sales in 20x2 were $170,000 Based solely on the current ratio and the quick ratio, has the firm's linuidity position deteriorated or improved Round your answers to two decimal places Sales in 20X1 were $170,000. Sales in 20x2 were $170,000 a. Based solely on the current ratio and the quick ratio, has the firm's liquidity position deteriorated or improved? Round your answers to two decimal places. Current ratios: 20x1: 20x2: Quick ratios: 20x1: 20x2: The firm's liquidity position has lect b. Without doing calculation, has days sales outstanding receivables turnover) improved Days sale outstanding has elect c. Without doing a calculation, has inventory tumover deteriorated Inventory turnover has d. If the firm earned $5,000 during 20x2, what proportion of those carrings were distributed? Round your answer to two decimal places a. Based solely on the current ratio and the quick ratio, has the firm's liquidity position deteriorated or improved? Round your answers to two dech Current ratios: 20x1: 20x2: Quick ratios: 20x1; 20x2: -Select- The firm's liquidity position has Select b. Without doing a calculation, deteriorated anding (receivables turnover) improved? improved Days sale outstanding has seks remained the same c. Without doing a calculation has inventory turnover deteriorated? Inventory turnover has -Select- d. If the firm earned $5,000 during 20x2, what proportion of those earnings were distributed? Round your answer to two decimal places. %
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