Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total

image text in transcribed

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Year 2 Year 1 $ 188 $ 100 218 218 168 158 118 118 $ 692 $ 594 $ 228 58 118 $ 208 58 108 $ 404 $ 374 Sales on account during the year totaled $1,340 thousand. Cost of goods sold was $940 thousand. Required: Compute the following for Year 2: a. Working capital. (Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) c. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts receivable turnover. (Round your answer to 2 decimal places.) e. Average collection period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.) f. Inventory turnover. (Round your answer to 2 decimal places.) g. Average sale period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.) a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover e. Average collection period f. Inventory turnover days g. Average sale period 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

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions