Solution-Compute the current ratio and quick ratio

Compute the current ratio and quick ratio

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Reference no: EM131757973

Operating Asset Management Analysis

Partial comparative balance sheet and income statement information for Posad Company is as follows:

2014	2013
Cash	$ 13,600	$ 10,400
Marketable securities	7,200	17,200
Accounts receivable (net)	44,800	35,600
Inventory	54,400	49,600
Total current assets	$120,000	$112,800
Accounts payable	$ 40,000	$ 28,200
Net sales	$322,560	$220,720
Cost of goods sold	217,600	203,360
Gross margin	$104,960	$ 17,360

In 2012, the year-end balances for Accounts Receivable and Inventory were $32,400 and $51,200, respectively. Accounts Payable was $30,600 in 2012 and is the only current liability.

Compute the current ratio, quick ratio, receivables turnover, days' sales uncollected, inventory turnover, days' inventory on hand, payable turnover, days' payable for each year, and financing period. Assume 365 days in a year. Round your answers to one decimal place

Reference no: EM131757973

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Compute the current ratio and quick ratio

Reference no: EM131757973

Reference no: EM131757973

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