Top Posters
Since Sunday
7
6
o
5
b
4
s
3
j
3
b
3
m
3
K
3
g
3
L
3
w
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
harra harra
wrote...
Go to Answer
Posts: 1309
Rep: 2 0
6 years ago
The accountant at Wilton and Jones gathered the following selected accounting information:

      2014   2013
   Cash   $ 40,000   $ 35,000
   Short-term investments   30,000   17,000
   Accounts receivable (net)   35,000   25,000
   Inventory   65,000   65,000
   Prepaid expenses   7,000   9,000
   Accounts payable   60,000   54,000
   Salary payable   14,000   15,000
   Income taxes payable   11,000   13,000
   Bonds payable (due 2019)   80,000   80,000
   Net credit sales   270,000   235,000
   Cost of goods sold   165,000   141,000

a) Compute the acid-test ratio for 2014 and 2013.
b) Compute the days' sales in receivables for 2013 and 2014. The accounts receivable (net) at December 31, 2012, were $39,000.
c) Are the ratios improving or deteriorating?
Textbook 
Accounting, Volume 1, Canadian Edition

Accounting, Volume 1, Canadian Edition


Edition: 9th
Authors:
Read 65 times
1 Reply
Replies
Answer verified by a subject expert
KryzenKryzen
wrote...
#1
Posts: 466
Rep: 34 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

harra Author
wrote...

6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
kamikazekota
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
deathDoUsPart
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1069 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 47
  
 293
  
 291
Your Opinion
Previous poll results: Which is the best fuel for late night cramming?