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Tomm Tomm
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7 years ago
Vista Inc. had the following balances in selected accounts at the end of 2013 and 2014.

   2013   2014
Cash   $58,000   $45,000
Short-term investments    46,000   39,000
Accounts receivable   54,000   61,000
Allowance for uncollectible accounts   3,500   5,000
Inventory   78,000   98,000
Accounts payable   91,000   102,000
Wages payable   17,000   25,000
Income taxes payable   4,500   6,500
Note payable (due 2019)   100,000   100,000
Sales   415,000   525,000
Cost of goods sold   225,000   304,000
The accounts receivable at the end of 2012 were $50,000 and the allowance for uncollectible accounts was $2,500.

Required:
a.   Calculate the acid test ratio for 2013 and 2014 for Vista Inc.
b.   Calculate the days' sales in receivables for 2013 and 2014 for Vista Inc.
c.   Determine whether the acid-test ratio improved or deteriorated from 2013 to 2014.
d.   Determine whether the collection period increased or decreased from 2013 to 2014.
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
Authors:
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ACC 925
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msayed2004msayed2004
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