Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with this question E12.10 Sonic Ltd has the following comparative data. SONIC LTD Statement of financial position 30 June 2016 2016 2015

image text in transcribed

Please help me with this question

E12.10 Sonic Ltd has the following comparative data. SONIC LTD Statement of financial position 30 June 2016 2016 2015 $30 000 60 000 50 000 180 000 $320 000 $60 000 100 000 120 000 40 000 $320 000 Cash $20 000 65 000 60 000 200 00O 345 000 $50 000 100 000 140 000 55 000 $345 000 Receivables (net) Property, plant and equipment (net) Accounts payable Loan payable (15%) Share capital, $10 each Retained earnings Additional information for 2016: 1. Profit was $20 000 2. Sales on account were $38o ooo. Sales returns and allowances amounted to $30 ooo 3. Cost of sales was $200 ooo 4. Net cash provided by operating activities was $50 ooo 5. The loan payable Is a non-current llabllity In both years. Required Calculate the following at 30 June 2016: a. Current ratio. b. Quick ratio. C. Recelvables turnover d. Average collection perlod. e. Inventory turnover f. Average days In Inventory

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

Auditing And Assurance Services

Authors: Alvin Arens, Randal J. Elder

14th Global Edition

0273755013, 978-0273755012

More Books

Students also viewed these Accounting questions

Question

Total variation = 13.459; SSE = 2.806; b1, = 2.6652

Answered: 1 week ago

Question

Did you provide headings that offer structure to the information?

Answered: 1 week ago