Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. for period* year end for period* year end $ s $ $

For period* Year end For period* Year end $ S $ $ Net credit sales...

80.2K

Verified Solution

Question

Accounting

image
For period* Year end For period* Year end $ S $ $ Net credit sales 360,000 480,000 Cost of sales 234,000 264,000 Cash 27,400 18,700 Accounts receivable 45,000 41,700 68,600 72,300 Inventory 46,800 42,400 66,000 70,400 Accounts payable 38,600 36,700 47,500 50,300 *Represents average for asset and liability accounts. Required: a. For each company, calculate: i. working capital (1 mark) ii. current ratio (1 mark) iii. quick ratio (1 mark) iv. inventory turnover period in days (1 mark) v. accounts receivable turnover period in days (1 mark) vi. accounts payable turnover period in days (2 mark) vii. operating cycle in days (1 mark) b. Which company is more efficient is managing their working capital? Support your arguments by the calculations provided in question (a) above. (2 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2) Describe what exploratory, descriptive, and causal research is and how they are related to one...

Statistics
Q

Calculate the pH and the pOH of an aqueous solution that is 0.025 M in HCl...

Chemistry
Q

the topic is FAMILY THERAPY 1. What are the basic tenets of this approach to therapy? 2.How does...

Psychology
Q

Given the following adjacency matrix, A, for nodes a, b, c, and d, find the transitive...

Advance Math
Q

In the figure below a neutral insulating disk of mass M and radius R is...

Physics
Q

5 mZDEC x 53 m DEF 176 and m CEF D E C x 137...

Geometry
Q

A person standing on the earth notices that a 747 jet flying overhead subtends an...

Basic Math
Q

A lottery involves 28 numbers, from which 5 are randomly selected without replacement. Order does...

Calculus
Q

8 90 The middle term of 5x DSO 56x y D 70x B E 70x...

Calculus
Q

14 TB MC Qu 05 98 Algo Misty Mountain Outf Miety Mountain Outfittore le a...

Algebra
Q

What is payroll taxes? Suppose it is no longer paid into the system, what do...

Accounting
Q

Let us consider a Bullish Spread strategy. There are two call options, X2=100 and X1=50....

Finance