Question

Please answer All questions.

1.) The following items are reported on a company's balance sheet:

Cash	$607,200
Marketable securities	474,400
Accounts receivable (net)	585,900
Inventory	230,000
Accounts payable	575,000

Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

a. Current ratio
b. Quick ratio

2.)

A company reports the following:

Sales	$436,540
Average accounts receivable (net)	18,980

Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.

a. Accounts receivable turnover
b. Number of days' sales in receivables	days

Answer 1

А B Current Liabilities i Requirement 1 2 Basic Information 3 Particulars 4 Cash 5 Marketable securities 6 Accounts receivable 7 Inventory 8 Accounts payable 9 Total Current Assets 6,07,200 $ 4,74.400 $ 5,85,900 $ 2,30,000 5,75,000 5,75,000 S 18,97,500S 10 11 Current Ratio =$3.3 = Current Assets Current liabilities =18,97,500 5,75,000 12 13 14 Quick Ratio 15 =Current Assets-Inventory Current Liabilites =$18.97,500-2,30,000 5,75,000 =$16,67,500 =$2.9 5,75,000 16 17

A B 18 19 Requirement 2 20 Accounts Receivable turnover sales Average accounts Receivable(NET) =$4,36,540 $18,980 23 28 Number of days' sales in receivables 365 Accounts Receivable Turnover =365 23 =15.9 days