Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed): (Click the icon to view the financial data.) Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) = Acid-test ratio Data table Accounts Payable Cash Merchandise Inventory: March 31, 2024 March 31, 2023 Net Credit Sales Revenue Long-term Assets Long-term Liabilities $ 330,000 358,800 270,000 240,000 3,285,000 430,000 90,000 Print Accounts Receivable, net: March 31, 2024 March 31, 2023 Cost of Goods Sold Short-term Investments Other Current Assets Other Current Liabilities Done $ 240,000 120,000 1,150,000 150,000 100,000 190,000

Gardner Clothiers reported the following selected items at March 31, 2024 (last year's-2023-amounts also given as needed): (Click the icon to view the financial data.) Compute Gardner's (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending March 31, 2024. Evaluate each ratio value as strong or weak. Gardner sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Gardner's acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) = Acid-test ratio Data table Accounts Payable Cash Merchandise Inventory: March 31, 2024 March 31, 2023 Net Credit Sales Revenue Long-term Assets Long-term Liabilities $ 330,000 358,800 270,000 240,000 3,285,000 430,000 90,000 Print Accounts Receivable, net: March 31, 2024 March 31, 2023 Cost of Goods Sold Short-term Investments Other Current Assets Other Current Liabilities Done $ 240,000 120,000 1,150,000 150,000 100,000 190,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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Using the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?
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