Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 13

Using the acid-test ratio and days' sales in receivables to evaluate a company
Southside Clothiers reported the following items at September 30, 2012 (last year's-2011-amounts also given as needed):

Requirement
1. Compute Southside's (a) acid-test ratio, (b) days' sales in average receivables for 2012, and (c) accounts receivable turnover ratio. Evaluate each ratio value as strong or weak. Southside sells on terms of net 30