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Required: a. Compute the following working capital for Year 2. (Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.) b.
Required: | |
a. | Compute the following working capital for Year 2.(Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.) |
b. | Compute the following current ratio for Year 2. (Round your answer to 2 decimal places.) |
c. | Compute the following acid-test ratio for Year 2. (Round your answer to 2 decimal places.) |
d. | Compute the following accounts receivable turnover for Year 2.(Round your answer to 2 decimal places.) |
e. | Compute the following average collection period for Year 2.(Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 2 decimal place.) |
f. | Compute the following inventory turnover for Year 2.(Round your answer to 2 decimal places.) |
g. | Compute the following average sale period for Year 2. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 2 decimal place.) |
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: 300 160 Cash Accounts receivable 370 380 Inventory 250 180 71 81 Prepaid expenses 991 801 Total current assets Current liabilities: 300 300 Accounts payable 210 99 Accrued liabilities 71 Notes payable, short term 81 591 470 Total current liabilities Sales on account during the year totaled $1,550 thousand. Cost of goods sold was $945 thousand
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