Business
Managerial Accounting
The financial statements of Advent News, Inc., include the following

The financial statements of Advent News, Inc., include the following items: Requirement 1. Compute the following ratios

Question:

The financial statements of Advent News, Inc., include the following items:

Requirement
1. Compute the following ratios for the current year:
a. Current ratio
b. Acid-test ratio
c. Inventory turnover
d. Accounts receivable turnover
e. Days sales in average receivables
(Round your answers to a through d to two decimal points. Round your answer to e to the nearest wholenumber.)

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...

Transcribed Image Text:

Current Year Preceding Year Balance sheet: 65,000 91,000 25,000 82,000 75,000 6,000 12.000 285,000 97,000 Cash Net receivables Inventory Prepaid expe 13,000 79,000 93,000 lities133,000 Income statement: Net credit sales Cost of goods sold $494,000 277,000

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a Current ratio 256000 192 133000 b Acidtest quick 65000 13000 790...View the full answer

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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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Question Posted: Dec 10, 2012 05:04 AM

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