Evaluate the liquidity position of Beardom Gym Center. The following data areprovided:CashP150,00070,000Trading InvestmentsReceivables:Jan. 1Dec. 31Merchandise Inventory158.000225.000Jan. 1250.000185.000230.0002,750,000|4,800,000Dec. 31Current LiabilitiesCost of Goods SoldCredit SalesRequired: Calculate the following:А.1. Working Capital(Use ending balances)2. Current Ratio(Use ending balances)3. Quick Ratio(Use ending balances)B. Is Beardom doing a good job in managing inventory and receivables? Explain.C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1,analyze the liquidity performance of Beardom versus the industry.4. Inventory turnover5. Receivable turnover6. Average age of receivables

Evaluate the liquidity position of Beardom Gym Center. The following data are provided: Cash P150,000 70,000 Trading Investments Receivables: Jan. 1 Dec. 31 158,000 225,000 Merchandise Inventory Jan. 1 Dec. 31 Current Liabilities Cost of Goods Sold Credit Sales Required: Calculate the following: 250,000 185.000 230,000 2,750,000| 4,800,000 A.

Evaluate the liquidity position of Beardom Gym Center. The following data are provided: Cash P150,000 70,000 Trading Investments Receivables: Jan. 1 Dec. 31 158,000 225,000 Merchandise Inventory Jan. 1 Dec. 31 Current Liabilities Cost of Goods Sold Credit Sales Required: Calculate the following: 250,000 185.000 230,000 2,750,000| 4,800,000 A.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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