Micro-Vision Computers' comparative financial statements for Last Year and This Year included the following selected data:...

 

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Micro-Vision Computers' comparative financial statements for Last Year and This Year included the following selected data: Balance Sheet Current Assets: This Year Last Year (Dollar amounts in thousands) Cash $ 20 $ 18 Short-Term Investments Receivables, Net 70 65 75 70 Inventory 150 140 Prepaid Expenses 25 22 Total Current Assets $ 340 $ 315 Total Current Liabilities $ 220 $ 220 Income Statement Sales Revenue $ 935 $ 760 Required: a. Calculate the following ratios for Last Year and This Year: 1. Current ratio 2. Acid-test ratio 3. One day's sales Write a short memo describing to Micro-Vision Computers' owner, Susan Bright, which ratio | values showed improvement from Last Year to This Year and which ratio values deteriorated. Indicate whether this trend was favourable or unfavourable for Micro-Vision Computers. Micro-Vision Computers' comparative financial statements for Last Year and This Year included the following selected data: Balance Sheet Current Assets: This Year Last Year (Dollar amounts in thousands) Cash $ 20 $ 18 Short-Term Investments Receivables, Net 70 65 75 70 Inventory 150 140 Prepaid Expenses 25 22 Total Current Assets $ 340 $ 315 Total Current Liabilities $ 220 $ 220 Income Statement Sales Revenue $ 935 $ 760 Required: a. Calculate the following ratios for Last Year and This Year: 1. Current ratio 2. Acid-test ratio 3. One day's sales Write a short memo describing to Micro-Vision Computers' owner, Susan Bright, which ratio | values showed improvement from Last Year to This Year and which ratio values deteriorated. Indicate whether this trend was favourable or unfavourable for Micro-Vision Computers.

Answer rating: 100% (QA)

To calculate the ratios and analyze the trend lets compute the required ratios for both Last Year an... View the full answer