Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do you find the Quick (acid-test) ratio? how do you find the Acccounts receivable turnover? Balance Sheets (Summarized) Year End Year End 2016 2015

image text in transcribed
image text in transcribed
how do you find the Quick (acid-test) ratio?
how do you find the Acccounts receivable turnover?
Balance Sheets (Summarized) Year End Year End 2016 2015 2016 2015 Current assets: Current liabilities: Cash 13,000 $ 9,000 Accounts payable 15.000 S 16,500 Marketable securities 26,000 15,000 103,000 Other current liabilities 105,000 Accounts receivable, net 54.000 68,000 Long-term liabilities 20,000 21,000 Inventory 191.000 187.000 Stockholders equity 154,000 Other current assets 8,000 8.000 154,500 10.000 Long-term assets $ 292.000 S 297,000 Total liabilities and equity 297,000 292,000 S Total assets Income Statement (partial): 2016 S 793 000 Sales revenue Requirements 1. Compute Navajo's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2016 Evaluate each rato value as strong or weak All sales are on account with terms of net 30 days Recommend two ways for Navajo to speed up its cash flow from receivables 2. Requirement 1. Compute Navajo's (a) quick (acid-test) ratio and (b) days sales outstanding for 2016. Evaluate each ratio value as strong or weak All sales are on account with terms of net 30 days (a) Enter the formula and calculate the quick (acid-test) ratio for 2016. (Abbreviation used Cash Cash and cash equivalents Round your final answer to two decimal places) Cash Short-term investments Net current receivables Total current iliablities Quick (acid-test) ratio 93.000 118.000 0.79 Navajo's quick (acid-test) ratio is considered fairly weak (b) Select the formula and calculate Navaio's days sales outstanding for 2016 (Round interim calculations to two decimal places, X0XXX Round the days' sales outstanding up to the nest wahole day ) 365 days Accounts receivable turnover Days sales outstanding 365

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

Lease Audits The Essential Guide

Authors: Theodore H Hellmuth

1st Edition

0934055041, 978-0934055048

More Books

Students also viewed these Accounting questions

Question

andpredicted y =

Answered: 1 week ago