What is the acid-test ratio?

Q: At the beginning of 2019, Blue Devil Inc. had net Accounts Receivable of $49,000. At the end of…

A: Quick ratio: The financial ratio which evaluates the ability of a company to pay off the instant…

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Average Accounts Receivables = (Beginning Accounts Receivables  + Ending Accounts Receivables ) /2…

Q: Oman chromite company LLC had sales last year of OMR 500,000, including cash sales of OMR 208,000.…

A: Accounts receivable = Credit Sales * Average collection period / 365

Q: The following data are taken from the balance sheet at the end of the current year.  Determine the…

A: Ratio analysis can be defined as the process of obtaining the company's information in the area of…

Q: Jaguar Plastics Company has been operating for three years. At December 31 of last year, the…

A: 1. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the…

Q: Computer World reports income tax expense of $340,000. Income taxes payable at the beginning and end…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: Pedantic Ltd has operating profit for the year ended 30 June 2020 of £40,300, after charging…

A: Cash flow from operating activities :- Net income + Non cash expense + Loss on disposal of assets…

Q: On the basis of the following data related to assets due within one year for Simons Co. prepare…

A: Balance sheet is a financial statement which shows the position of a firm at a particular point of…

Q: If Emperium Inc. had credit sales of 2,027,773 per year and its days sales outstanding was equal to…

A: Days Sales or Receivables Outstanding means the number of days it takes a company to realize cash…

Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL…

Q: Happy Selling's had the following accounts atyear end: Cash-250,000, Accounts Payable-70,000,…

A: Introduction: Current Assets: The Assets which can be easily converted in to cash called as Current…

Q: A firm purchased $35,000 in office furniture this year. The firm has $150,000 in earnings before…

A: ●a. For office furniture and fixtures, 7 year MACRS depreciation schedule should be used…

Q: At​ year-end, StickStick has cash of $ 22 comma 000$22,000​, current accounts receivable of $ 80…

A: Calculate the receivables turnover ratio.

Q: In the base year Marley Enterprises of Vancouver had cash of $560, accounts receivable of $2650,…

A: Inventory forms a part of current assets and represents the value of raw material, work in process…

Q: At year-end, Sample has cash of $8,000, current accounts receivable of $40,000, merchandise…

A: Average accounts receivables = (beginning balance+ending balance)/2 Average accounts receivables =…

Q: Wexler, Inc.’s income statement showed total expenses for the year to be $50,000. If the com-pany’s…

A: Net income: It refers to the excess of a company's sales revenue over its operating expenses and…

Q: A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts…

A: Average collection period is the time taken by the company to collect the funds from its…

Q: Tulips Company has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: Accounts receivables are the average amount of money to be charged on credit by the consumers who…

Q: Ill Company provides the following data for the year 2020:   Cash sales - 500,000; Collection from…

A: The gross sales are calculated as sum of net sales, sales discount and allowance and sales returns.

Q: During the year, the Senbet Discount Tire Company had gross sales of $1.23 million. The company’s…

A: The cash flow that is generated by a company from its primary business operation is term as the…

Q: Libscomb Technologies' annual sales are $6,615,140 and all sales are made on credit, it purchases…

A: The question is based on the concept of financial ratios

Q: In its income statement for the year ended December 31, 2020, Angel Company reported revenue of…

A: Cash basis of accounting - As per this concept, financial events are recorded in the books for which…

Q: In its income statement for the year ended December 31, 2020, Angel Company reported revenue of…

A: Amount received = Beginning accounts receivable + revenue - ending accounts receivable -…

Q: Suppose Columbia Sportswear Company had accounts receivable of $206,024,000 at the beginning of a…

A: Amount of cash receipts from customers = Beginning Accounts receivable + Sales revenue - Ending…

Q: The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the…

A: Return on assets =Net earnings / Average total assets Where, Average total assets = (total assets,…

Q: During the year, the Senbet Discount Tire Company had gross sales of $1.24 million. The company’s…

A: The term net income refers to the revenue or income left with the company after deducting all the…

Q: Maxwell Furniture Center had accounts receivable of $20,000 at the beginning of the year and $54,000…

A: Accounts receivable is increased by ($54,000-$20,000) $34,000 during the year.

Q: At the beginning of the year, ABC's Accounts Receivable balance was $82,300. During the year ABC…

A: The account receivables are also known by the name of debtors. These are the values due to a firm on…

Q: Khan's had the following accounts at year end: Cash-250,000, Accounts Payable-70,000, Accounts…

A: Introduction: Current Assets: Currents assets are shown in Balance sheet. Assets which can be easily…

Q: company has current assets of $87,000 (of which $43,000 is inventory and prepaid items) and current…

A: Answer 1) Calculation of Current ratio Current Ratio = Current Assets/ Current Liabilities…

Q: At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise…

A: Acid test ratio or quick ratio is computed by dividing quick assets by current liabilities. Quick…

Q: The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts…

A: Accounts receivables turnover ratio refers to the efficiency ratio which measures the effectiveness…

Q: A company had a beginning balance in accounts receivable of 15,000 USD. At the end of the period,…

A: Given that, beginning balance in accounts receivable of 15,000 USD closing  balance in accounts…

Q: In 2020, HK company has net credit sales of 925,000$ for the year. It had a beginning account…

A: Average Receivable Turnover = Credit Sales/Average Accounts Receivable Average Receivable in Days =…

Q: At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise…

A: Quick assets = Cash + Accounts receivable = $11,600 + $48,900 = $60,500

Q: Liam Co., had the following data in 2020. Compute the MCIT at 2%. Gross Sales 1,000,000 Sales…

A:

Q: On January 1, Kale Company has a beginning cash balance of $42,000. During the year, the company…

A: Amount to be borrowed = Desired ending cash balance - Amounts available where, Amounts available =…

Q: Teeter Company began 2022 with accounts receivable of $400,000 and an allowance for uncollectible…

A: Every business sells their products and services to customers. This sale is in the form of cash or…

Q: On January 1, the company’s account receivable and accounts payable were P1,200,000 and P1,500,000,…

A: Calculation of Gross Sales Gross Sales = Ending balance of Accounts Receivable + Cash Received from…

Q: Baxley Brother has a DSO of 23 days, and its annual sales are $3,650,000.  What is its accounts…

A:

Q: The following data relates to the assets due within one year for Simons Co. Cash $56,000 Accounts…

A: Simons Co. Balance Sheet  December 31 Assets     Current Assets:          Cash   $56,000…

Q: Using the following year-end information for Calvin’s Clothing, calculate the current ratio and…

A:

Q: B&B Mining has a DSO of 40 days, and its annual sales are 7,300, 000. What is its accounts…

A: Daily sales outstanding (DSO) = 40 Days Annual sales = 7,300,000 Number of days in a year = 365 Days

Q: In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax…

A: Net Income before interest and taxes = Net income + Interest expense + Tax expense Net Income before…

Q: In a recent year Ley Corporation had net income of $150,000, interest expense of $30,000, and a…

A: Net income: The net income of the business is determined by subtracting the total expenses from the…

Q: A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and…

A: SOLUTION- CURRENT RATIO= CURRENT ASSET / CURRENT LIABILITY .   ACID TEST RATIO= QUICK  ASSET /…

Q: Computer World reports income tax expense of $230,000. Income taxes payable at the beginning and end…

A: Income taxes expense for the year = $ 2,30,000  Income taxes payable at the beginning of the year =…

Q: At the beginning of the year, ABC's Accounts Payable balance was $75,000. During the year ABC paid…

A: Total Payment Made for Purchases = Opening Accounts Payable +Purchases made during the year -Closing…