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Selected data for Stick's Design are given as of December 31, Year 1 and Year 2: and compute: Current ratio for Year 2, Acid-test ratio
Selected data for Stick's Design are given as of December 31, Year 1 and Year 2: and compute: Current ratio for Year 2, Acid-test ratio for Year 2, Accounts receivable turnover for Year 2, Average collection period for Year 2 and Inventory turnover for Year 2 Year 2 Year 1 Net Credit Sales $25,000 $30,000 Cost of Goods Sold 16,000 18,000 Net Income 2,000 2,800 Cash 5,000 900 Accounts Receivable 3,000 2,000 Inventory 2,000 3,600 Current Liabilities 6,000 5,000 Required: Compute the following: _Current ratio for Year 2 Acid-test ratio for Year 2 C. Accounts receivable turnover for Year 2. d. Average collection period for Year 2. e Inventory turnover for Year 2
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