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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 44
Using ratio data to evaluate a company's financial position
The comparative financial statements of Perfection Cosmetic Supply for 2012, 2011, and 2010 include the data that follow:
Requirements
1. Compute these ratios for 2012 and 2011:
a. Acid-test ratio
b. Days' sales in receivables c. Accounts receivable turnover
2. Considering each ratio individually, which ratios improved from 2011 to 2012 and which ratios deteriorated Is the trend favorable or unfavorable for the company
The comparative financial statements of Perfection Cosmetic Supply for 2012, 2011, and 2010 include the data that follow:
Requirements
1. Compute these ratios for 2012 and 2011:
a. Acid-test ratio
b. Days' sales in receivables c. Accounts receivable turnover
2. Considering each ratio individually, which ratios improved from 2011 to 2012 and which ratios deteriorated Is the trend favorable or unfavorable for the company
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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