Tri-State Equipment reported the following items on July 31, 2016 (last year's amounts also given as needed):

 

Requirements

1. Compute Tri-State Equipment’s (a) quick ratio, (b) current ratio, and (c) accounts receivable turnover for 2016.

2. Evaluate each ratio value as strong or weak. Assume Tri-State Equipment sells on terms of net 30?

Transcribed Image Text:

Accounts Payable. . Accounts Receivable, Net: $45,000 21,500 July 31, 2016 . July 31, 2015 Cost of Goods Sold.. Short-term Investments. Other Current ASsets.. Other Current Liabilities 28,000 Cash.. Inventory: 31, 2016 . July 31, 2015. Net Credit Sales Long-term Assets Long-term Liabilities . 16,000 112,000 16,000 15,000 14,000 277,700 10,000 14,500 43,000 4,000