Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How to answer this question, just an easy explanation and answer A restaurant in Melbourne has the balance sheet data presented in the table below.
How to answer this question, just an easy explanation and answer
A restaurant in Melbourne has the balance sheet data presented in the table below. In 20X1, total revenue was $1,000,000, cost of sales was $360,000, and the proportion of sales on credit was 509%. In 20X2, total revenue was $2,500,000, cost of sales was $780,000, and the proportion of sales on credit was 259%. Answer the questions below the table. Current Assets Year end 20X0 Year end 20X1 Year end 20X2 Cash $20,000 $20,000 $105,000 Accounts Receivable 60,000 60,000 120,000 Marketable securities 15,000 15,000 30,000 Inventories 20,000 20,000 40,000 Prepaid expenses 5,000 5,000 5,000 Current Liabilities Year end 20X0 Year end 20X1 Year end 20X2 Accounts Payable $20,000 $20,000 $25,200 Accrued expenses 8,000 8,000 11,200 Current tax payable 9,000 9,000 6,800 Deposits and credit balances 1,600 1600 800 Current portion of loan 21,400 21,400 56,000 Answer the questions below, using two decimal places where necessary. If the required answer is a word, use one or two word answers, and use the words in BOLD CAPITALS to guide your answer. What is the current asset ratio for the year ended 20X1? What is the current asset ratio for the year ended 20X2? Based on this change in current asset ratio, has short-term stability got BETTER or WORSE? What is the inventory turnover ratio for 20X1? What is the inventory turnover ratio for 20X2? From 20X1 to 20X2, did the average shelving time of inventory INCREASE or DECREASEStep 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