1. What is the current Ratio assuming company A has the following data in its balance sheet? Current Asset of $3500,000 Current Liability of $3200,000 a) 1.09:1 b) 1.35:1 c) 0.9:1 d) 1:1.09 2. What is the current Ration assuming Company B has the following data in its balance sheet? Current Asset of $3,200,000 Currebt Liability of $3,500,000 a) 1:1.27 b) 1.09:1 c) 1:0.79
1. What is the current Ratio assuming company A has the following data in its balance sheet? Current Asset of $3500,000 Current Liability of $3200,000 a) 1.09:1 b) 1.35:1 c) 0.9:1 d) 1:1.09 2. What is the current Ration assuming Company B has the following data in its balance sheet? Current Asset of $3,200,000 Currebt Liability of $3,500,000 a) 1:1.27 b) 1.09:1 c) 1:0.79
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 8PA: The following select financial statement information from Candid Photography. Compute the accounts...
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1. What is the
Current Asset of $3500,000
Current Liability of $3200,000
a) 1.09:1
b) 1.35:1
c) 0.9:1
d) 1:1.09
2. What is the current Ration assuming Company B has the following data in its balance sheet?
Current Asset of $3,200,000
Currebt Liability of $3,500,000
a) 1:1.27
b) 1.09:1
c) 1:0.79
d) 0.91:1
Transcribed Image Text:Examine the balance sheet and income statement information for both companies below. Use the drop-
down pick list that is associated with each boxed area to select the accounts receivable turnover ratio and
days outstanding. Correct selections will turn the boxed area green.
Beginning accounts receivable
Ending accounts receivable
Net credit sales
Accounts receivable turnover >>>>
Days outstanding (rounded) >>>>
Financial Statement Information
A Company
1,000,000
1,500,000
5,000,000
B Company
250,000
200,000
2,250,000
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