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Compute the acid-test ratio for the heely equipment sales

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Reference no: EM131790803

Problem

Current Assets:

2015

2014

Cash

$180,000

$200,000

Accounts receivable, net of allowance for uncollectible accounts of $35,000 and $25,000

220,000

180,000

Inventory

50,000

40,000

Current liabilities 

$320,000

$320,000



1) Compute the acid-test ratio for the Heely Equipment Sales for 2015 and 2014. Compare the ratio for the two years.

2) Compute the days' sales in receivables if net sales were $3,650,000.

Reference no: EM131790803

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