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jdot jdot
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A year ago
Selected financial statement data for Oran Company are presented below.

December 31, 2021December 31, 2020
Cash$  40,000$  30,000
Short-term investments25,00018,000
Receivables (net)100,00080,000
Inventories85,00065,000
Total current liabilities100,00090,000
During 2021, net sales were $950,000, and cost of goods sold was $775,000.

Required:

a.Compute the following ratios at December 31, 2021:
(1)Current ratio
(2)Acid-test ratio
(3)Average collection period
(4)Average days to sell inventory
b.Assume credit terms are 2/10, net 30. What conclusion could an analyst draw about
the management of accounts receivable?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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jarste123jarste123
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A year ago
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