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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Completing requirement 3.
There are three choice for the first black:
a. Converting some
b. Just continuing to use of credit cards
c. Offering discount for early payments
There are three choices for the second blank:
a. Decreasing penalties for late payment
b. Emphasising credit cards for sales
c.

Transcribed Image Text:Compute these ratios for 2020 and 2019:
1 Comparative financial data
a. Current ratio
b. Acid-test ratio
C. Days' sales in receivables
Write a memo explaining to top management which ratio value
- Recommend two ways for Sunset Pools to improve cash flow
(in millions)
er the overall trend is favourable or
2020
2019
2018
equirement 1a. Compute the current ratios for 2020 and 2019.
Balance sheet
2020
2019
Current assets:
Current ratio
2.01
1.74
Cash
82 $
62 $
66
Short-term investments
130
168
113
Requirement 1b. Compute the acid-test ratios for 2020 and 2019,
Receivables, net of allowance for
2020
2019
uncollectible accounts of S27,
Acid-test ratio
1.15
0.96
S21, and $15, respectively
246
249
271
final answer to the nearest day.)
Requirement 1c. Compute the days' sales in receivables ratios for
Inventories
334
370
363
2020
2019
11
23
28
Prepaid expenses
841
Days' sales in
receivables
31 days
35 days
803 S
872 $
Total current assets
400 $
501 $
413
State whether the overall trend is favoura
Total current liabilities
Requirement 2. Write a memo explaining to top management whic
Income statement
MEMORANDUM
$ 2,896 $ 2,721 $ 2,209
Net sales
TO:
Top management of Gold Pools Inc.
FROM:
Student Name
Print
Done
RE:
Changes in ratio values from 2019 to 2020
is favourable for
the company because it shows that the company has improved its ability to meet its financial obligations
improved
from 2019 to 2020. This trend
The three ratios
and/or
Requirement 3. Recommend two ways for Gold Pools to improve cash flow from receivables.
Gold Pools can improve cash flow from receivables by
Clear All
Click to select your answer(s) and then click Check Answer.
File Explor... W Word
PDo Home...
All parts showing
Chapter 4...
Course H...
Type here to search
%24
%24
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