The comparative financial statements of Lakeland Restaurants for 2012, 2011, and 2010 include the following selected data:

Question:

Requirements
1. Compute these ratios for 2012 and 2011:
a. Quick ratio.
b. Current ratio.
c. Accounts receivable turnover. Assume all sales are credit sales.
d. Receivable collection period. Use 365 days.
2. Write a memo explaining to the company owner which ratios improved from 2011 to 2012, which ratios deteriorated, and which items in the financial statements hanged and caused changes in some ratios. Discuss whether this change conveys a favorable or an unfavorable impression about thecompany.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...