Acid-test ratio: The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio . Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 2

Question

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 6

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

Answer 7

Chapter 8, Problem 8.41BP

(1)(a)

To determine

Acid-test ratio:

The financial ratio which evaluates the ability of a company to pay all of its current liabilities, if they came due immediately is referred to as acid-test ratio.

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To compute: N Cosmetic Supply’s acid-test ratio for 2018 and 2017.

Answer 8

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

Answer 9

(1)(b)

To determine

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

Answer 10

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

Answer 11

(1)(c)

To determine

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

Answer 12

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 13

(2)

To determine

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 8 - Prob. 1QC Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - 6. During the year, Bernard Company had net credit...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...

Videos

To calculate: N Cosmetic Supply’s accounts receivable turnover ratio for 2018 and 2017.

To calculate: N Cosmetic Supply’s days’ sales in receivables for 2018 and 2017.

To identify: Whether each ratio has been improved or deteriorated, and identify whether each ratio’s trend is favorable or unfavorable.

Want to see the full answer?

Chapter 8 Solutions