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please show all your work and the answers for the inputs PPC Ltd. signed a five-year term loan in 2020 in which PPC was required
please show all your work and the answers for the inputs
PPC Ltd. signed a five-year term loan in 2020 in which PPC was required to maintain a current ratio of 2.5 times for a loan covenant. PPC provides normal credit terms of net 30 on all its sales. The following amounts were reported in the company's year-end financial statements for 2020 and 2019: Cash Accounts receivable Short-term investments Inventory Prepaid rent Accounts payable Wages payable Income tax payable Sales tax payable Notes payable (within 1 yr.) Bank loan payable Sales revenue 2020 $ 188,100 178,700 10,000 425,500 75,100 178,900 33,400 50,300 14,800 11,900 59.700 1,883,900 2019 $280.900 90,500 1,800 402,200 75,100 193,700 54,500 59,500 14,800 23,800 0 1,662,300 Additional information: The bank loan payable is repayable in annual principal payments of $11.940. Calculate the current ratio for 2019 and 2020. (Round answers to 2 decimal places, eg. 15.25.) 2020 2019 Current ratio e Textbook and Media Calculate the quick ratio for 2019 and 2020. (Round answers to 2 decimal places, eg. 15.25.) 2020 2019 Quick ratio e Textbook and Media Calculate the accounts receivable turnover ratio for 2019 and 2020 (just use the current year's Accounts Receivable balance). (Round answers to 1 decimal place, eg. 15.2.) 2020 2019 Accounts receivable turnover ratio times times e Textbook and Media Is PPC compliant with the current ratio covenant? e Textbook and Media How does PPC's average collection period compare to its normal credit terms? (Round answers to 1 decimal place, eg. 15.2. Use 365 days for calculation.) 2020 2019 Average collection period days days The average collection period is PPC's normal credit termsStep by Step Solution
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