Vision Equipment reported the following items on February 28, 2013: Accounts Payable ..... $ 449 Cash ..........

Question:

Vision Equipment reported the following items on February 28, 2013:

Accounts Payable ..... $ 449

Cash .......... 215

Inventory:

February 28, 2013 ..... 190

February 28, 2012 ..... 160

Net Credit Sales ..... 1,930

Long-term Assets ..... 410

Long-term Liabilities ..... 10

Accounts Receivable, Net:

February 28, 2013..... $ 220

February 28, 2012 ..... 150

Cost of Goods Sold ..... 1,200

Short-term Investments ..... 165

Other Current Assets ..... 90

Other Current Liabilities .... 145

Requirements:

1. Compute Vision Equipment’s (a) quick ratio and (b) accounts receivable turnover for 2013.

2. Evaluate each ratio value as strong or weak. Assume Vision Equipment sells on terms of net 30.

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...