Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Excerpts from Smallwood Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 $100 $192 222 172 222 162 122

image text in transcribed
Excerpts from Smallwood Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 $100 $192 222 172 222 162 122 $708 $606 Current assetsi Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Current liabilities Accounts payable Accrued liabilities Notes payable, short term Total current liabilities $232 62 $212 62 $616 S386 Sales on account during the year totaled $1,360 thousand. Cost of goods sold was $960 thousand. Required: Compute the following for Year 2: a. Working capital (Enter your answer in thousands of dollars, le, 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.) 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 answer to 1 decimal place.) a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover e. Average collection period Inventory tumover 9. Average sale period

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

Data Analytics For Auditing Using ACL

Authors: Alvin A. Arens

4th Edition

0912503629, 978-0912503622

More Books

Students also viewed these Accounting questions

Question

What were some of the team roles at Casper?

Answered: 1 week ago

Question

What were some of the team norms at Casper?

Answered: 1 week ago