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For 2016
a. Total current assets = $2,600,400
Total current liabilities = $3,156,000
working capital = Total current assets- Total current
liabilities
= 2,600,400-3,156,000
= -$555,600
b.
Current ratio = Total current assets/ Total current liabilities
= 2,600,400/3,156,000
= 0.82
c.
Acid test ratio = ( Cash + Accounts receivable)/Current liabilities
= (397,000+1,089,000)/3,156,000
= 1,486,000/3,156,000
= 0.47
d.
Average accounts receivable = (Beginning accounts receivable+ Ending accounts receivable)/2
= (776,400+1,089,000)/2
= $932,700
Accounts receivable turnover = Sales / Average accounts receivable
= 10,177,300/932,700
= 10.91
a. | Working capital | -$555,600 | ||
b. | Current ratio | 0.82 | ||
c. | Acid-test ratio | 0.47 | ||
d. | Accounts receivable turnover | 10.91 | times |
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