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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...
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