Q1: Use the information extracted from Crowe Co. given in the two tables below to answer Q1a, Q1b, Q1c, & Q1d. You must show plausible calculations to get credit [2 marks].

For year ending Dec 31, 2019 Sales [all on credit] $650,000 Cost of goods sold 425,000

Dec 31, 2019 Balances Dec 31, 2018 Balances Cash $19,500 $15,000 Accounts Receivable [net] 67,000 60,000 Inventory 75,100 64,500 Plant & Equipment [net] 195,000 183,900 Current liabilities $64,200 $52,700 Long-term notes payable 97,500 100,000

Q1a. Calculate Crowes 2019 current ratio. Round to 2 decimal places.

Answer

Q1b. Calculate Crowes 2019 acid test ratio. Round to 2 decimal places.

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Q1c. Calculate the 2019 accounts receivable turnover. Round to 2 decimal places.

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Q1d. Calculate the 2019 inventory turnover. Round to 2 decimal places.

Answer