Question
The financial statements of Harris Ltd. include the following items: LOADING... (Click the icon to view the financial statement information.) Required Compute the following ratios
The financial statements of
Harris
Ltd. include the following items:
LOADING...
(Click the icon to view the financial statement information.)
Required
Compute the following ratios for
2020:
(a) current ratio, (b) acid-test ratio, (c) inventory turnover, (d) days' sales in inventory, (e) accounts receivable turnover, and (f) days' sales in receivables.
| 2020 | 2019 | |
| Balance sheet balances |
|
|
| Cash | $14,000 | $16,000 |
| Short-term investments | 11,000 | 10,500 |
| Net receivables | 43,000 | 41,000 |
| Inventory | 49,000 | 44,000 |
| Prepaid expenses | 6,500 | 6,500 |
| Total current assets | $123,500 | $118,000 |
| Total current liabilities | $87,000 | $48,000 |
| Income statement balances |
|
|
| Net credit sales | $260,000 |
|
| Cost of goods sold | 150,000 |
|
PrintDone
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started