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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 43
Evaluating ratio data
Algonquin Carpets reported the following amounts in its 2013 financial statements. The 2012 figures are given for comparison.
Requirements
1. Calculate Algonquin's acid-test ratio for 2013. Determine whether Algonquin's acid-test ratio improved or deteriorated from 2012 to 2013. How does Algonquin's acid-test ratio compare with the industry average of 0.80
2. Calculate the days' sales in receivables for 2013. How do the results compare with Algonquin's credit terms of net 30
3. Calculate Algonquin's accounts receivable turnover ratio. How does Algonquin's ratio compare to the industry average accounts receivable turnover of 10
Algonquin Carpets reported the following amounts in its 2013 financial statements. The 2012 figures are given for comparison.
Requirements
1. Calculate Algonquin's acid-test ratio for 2013. Determine whether Algonquin's acid-test ratio improved or deteriorated from 2012 to 2013. How does Algonquin's acid-test ratio compare with the industry average of 0.80
2. Calculate the days' sales in receivables for 2013. How do the results compare with Algonquin's credit terms of net 30
3. Calculate Algonquin's accounts receivable turnover ratio. How does Algonquin's ratio compare to the industry average accounts receivable turnover of 10
Explanation
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Acid - test ratio is the ratio of the su...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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