Question
I need help to verify that I did the following equations correctlyI would really appreciate it if you could explain if its wrong 1. Current
I need help to verify that I did the following equations correctlyI would really appreciate it if you could explain if its wrong
1. Current Ratio = Current Assets/Current Liabilities ?
2. Days Sales In Receivables = Ending Net Accounts Receivable (accounts receivable - allowance for doubtful accounts)/Credit Sales (sales - sales returns - warranty expense)/360?
3. Doubtful Accounts Ratio = Allowance For Doubtful Accounts/Ending Gross Receivables (accounts receivable + other receivables + allowance for doubtful accounts)?
4. Days Sales In Inventory = Ending Inventory (inventory - reserve for inventory obsolescence)/Cost Of Goods Sold/360?
Thank you so much!
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