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Tomm Tomm
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6 years ago
The accountant at Intellectual Property Inc. gathered the following selected accounting information:

   2013   2014
Cash   $ 35,000   $33,000
Short-term investments    28,000   29,000
Accounts receivable (net)   33,000   30,000
Inventory   47,000   50,000
Prepaid expenses   7,000   5,500
Accounts payable   55,000   62,000
Salaries payable   10,000   8,000
Income taxes payable   3,000   2,500
Bonds payable (due 2019)   90,000   90,000
Sales   250,000   230,000
Cost of goods sold   180,000   165,000

Required:

a. Compute the acid-test ratio for 2013 and 2014.
b. Compute the days' sales in average receivables for 2013 and 2014.
Net accounts receivable on December 31, 2012 was $27,000.
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
Authors:
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ACC 925
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TheSinTheSin
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6 years ago
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Tomm Author
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6 years ago
Thanks
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Smart ... Thanks!
Smair87
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Helped a lot
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