Data from Gofman Corporation\'s most recent balance sheet appear below: 160.00 1
ID: 2635095 • Letter: D
Question
Data from Gofman Corporation's most recent balance sheet appear below:
160.00
14. Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900.
The working capital at the end of Year 2 is:
A. $320
B. $500
C. $1,210
D. $1,070
15. Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900.
The current ratio at the end of Year 2 is closest to:
A. 0.32
B. 0.72
C. 2.78
D. 0.23
16. Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900.
The acid-test ratio at the end of Year 2 is closest to:
A. 1.39
B. 2.78
C. 1.44
D. 0.94
17. Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900.
The average collection period for Year 2 is closest to:
A. 0.9 days
B. 39.3 days
C. 36.5 days
D. 1.2 days
18. Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900.
The average sale period for Year 2 is closest to:
A. 97.3 days
B. 89.2 days
C. 67.4 days
D. 252.7 days
160.00
Accounts receivable 140.00 120.00 Inventory 240.00 200.00 Prepaid expenses 90.00 80.00 Total current assets 500.00 560.00 Total current liabilities 180.00 200.00Explanation / Answer
14. working capital = current assets-current liabilities =500-180=320
15.current ratio=currentassets/current liabilities=2.7777777... =2.78
16. acid test ratio= Cash + Marketable Securities + Accounts Receivable =0.94
currentliabilities
17. avg collection period= Average Inventory =36.5
Cost of Goods Sold / 365
18.avg sale perod= 365/inventory turnover =
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.