Problem
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Current Assets:
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2015
|
2014
|
|
Cash
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$180,000
|
$200,000
|
|
Accounts receivable, net of allowance for uncollectible accounts of $35,000 and $25,000
|
220,000
|
180,000
|
|
Inventory
|
50,000
|
40,000
|
|
Current liabilities
|
$320,000
|
$320,000
|
|
|
|
1) Compute the acid-test ratio for the Heely Equipment Sales for 2015 and 2014. Compare the ratio for the two years.
2) Compute the days' sales in receivables if net sales were $3,650,000.