What calculations or analyses would you make with these numbers that might help you assess whether the financial relationships are “reasonable”? 1985 1986 Sales $ 1,240,524 $ 4,845,347 Cost of goods sold 576,694 2,050,779 Accounts receivable 0 693,773 Cash 30,321 87,014 Current liabilities 2,930 1,768,435 Notes payable—current 0 780,507
What calculations or analyses would you make with these numbers that might help you assess whether the financial relationships are “reasonable”? 1985 1986 Sales $ 1,240,524 $ 4,845,347 Cost of goods sold 576,694 2,050,779 Accounts receivable 0 693,773 Cash 30,321 87,014 Current liabilities 2,930 1,768,435 Notes payable—current 0 780,507
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
These are selected numbers from the financial statements of ZZZZ Best for fiscal years 1985 and 1986.
What calculations or analyses would you make with these numbers that might help you assess whether the financial relationships are “reasonable”?
| 1985 | 1986 | |||||
| Sales | $ | 1,240,524 | $ | 4,845,347 | ||
| Cost of goods sold | 576,694 | 2,050,779 | ||||
| 0 | 693,773 | |||||
| Cash | 30,321 | 87,014 | ||||
| Current liabilities | 2,930 | 1,768,435 | ||||
| Notes payable—current | 0 | 780,507 | ||||
|
|
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