Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below. Year 2 Year 1 Current assets: Cash Accounts receivable, net Inventory
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below. Year 2 Year 1 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 $172 202 152 102 $628 $100 202 142 102 $546 $212 42 102 $356 $192 42 92 $326 Sales on account during the year totaled $1.260 thousand. Cost of goods sold was $860 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.) 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.) 9. Average sale period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answe to 1 decimal place.) Working capital b. Current ratio Acid test ratio d Accounts receivable turnover Average collection period Inventory turnover 9 Average sale period days days
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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