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Wund the qu i Requirements 1. Compute Goldens quick (acid-test) ratio at the end of 2019. Round to two decimal places. How d
© Data Table 2019 2018 $ $ 11,500 13,500 Current assets: Cash Short-term investments Accounts receivable Less: Allowance for
Golden Products reported the following u click the icon to view the financial our in ) 2018 financia m ents The 2018 metre gi
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Answer #1

Requirement 1:

Cash + short term investments + net current receivables / Total current liabilities = Quick ratio

[ 11500 + 17000 + 72900 ] / 97500 = 1.04

Golden's position is favorable compared to the industry average of 0.92

Requirement 2:

365 days / Accounts receivable turnover = Days sales outstanding

          365 /13 = Days sales outstanding

               = 28 or 29 days

**Accounts receivable turnover = Net sales 2019 /Average accounts receivable

   Accounts receivable turnover = 907400 /[(72900+66700)/2]

Accounts receivable turnover = 907400 / 69800 = 13            

Days sales outstanding is under the credit terms of net 30 days

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