The comparative financial statements of Highland Cosmetic Supply for 2024, 2023, and 2022 include the data shown here: (Click the icon to view the comparative financial data.) Read the requirements. Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash=Cash including cash equivalents; ST invest. short-term investments. Round the acid test ratios to two decimals, X.XX.) Acid-test ratio 2024 2023 Requirements + 1. Compute these ratios for 2024 and 2023: a. Acid-test ratio (Round to two decimals.) b. Accounts receivable turnover (Round to two decimals.) c. Days' sales in receivables (Round to the nearest whole day.) 2. Considering each ratio individually, which ratios improved from 2023 to 2024 and which ratios deteriorated? Is the trend favorable or unfavorable for the company? Print Done - X CID = Data table Balance sheet-partial Current Assets: Cash + Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses. Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) Print $ 2024 85,000 $ 155,000 295,000 335,000 45,000 915,000 570,000 2023 Done 70,000 $ 155,000 250,000 320,000 15,000 2022 65,000 115,000 245,000 320,000 25,000 810,000 770,000 625,000 625,000 5,840,000 5,150,000 4,200,000 - X
The comparative financial statements of Highland Cosmetic Supply for 2024, 2023, and 2022 include the data shown here: (Click the icon to view the comparative financial data.) Read the requirements. Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash=Cash including cash equivalents; ST invest. short-term investments. Round the acid test ratios to two decimals, X.XX.) Acid-test ratio 2024 2023 Requirements + 1. Compute these ratios for 2024 and 2023: a. Acid-test ratio (Round to two decimals.) b. Accounts receivable turnover (Round to two decimals.) c. Days' sales in receivables (Round to the nearest whole day.) 2. Considering each ratio individually, which ratios improved from 2023 to 2024 and which ratios deteriorated? Is the trend favorable or unfavorable for the company? Print Done - X CID = Data table Balance sheet-partial Current Assets: Cash + Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses. Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) Print $ 2024 85,000 $ 155,000 295,000 335,000 45,000 915,000 570,000 2023 Done 70,000 $ 155,000 250,000 320,000 15,000 2022 65,000 115,000 245,000 320,000 25,000 810,000 770,000 625,000 625,000 5,840,000 5,150,000 4,200,000 - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The comparative financial statements of Highland Cosmetic Supply for 2024, 2023, and 2022 include the data shown here:
(Click the icon to view the comparative financial data.)
Read the requirements.
Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratios to two decimals, X.XX.)
Acid-test ratio
2024
2023
Requirements
+
1. Compute these ratios for 2024 and 2023:
a. Acid-test ratio (Round to two decimals.)
b. Accounts receivable turnover (Round to two decimals.)
c. Days' sales in receivables (Round to the nearest whole day.)
2. Considering each ratio individually, which ratios improved from 2023 to 2024
and which ratios deteriorated? Is the trend favorable or unfavorable for
the company?
Print
Done
- X
=
...
=
Data table
Balance sheet-partial
Current Assets:
Cash
Short-term Investments
Accounts Receivable, Net
Merchandise Inventory
Prepaid Expenses.
Total Current Assets
Total Current Liabilities
Income statement-partial
Net Sales (all on account)
Print
$
2024
85,000 $
155,000
295,000
335,000
45,000
915,000
570,000
5,840,000
Done
2023
70,000 $
155,000
250,000
320,000
15,000
810,000
625,000
5,150,000
2022
=
65,000
115,000
245,000
320,000
25,000
770,000
625,000
4,200,000
X
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