Triple H Enterprises Ltd. revealed the following information for the years ended December 31, 2020 and 2019: Triple H Enterprise's credit terms are net 30 days.
Instructions
a) Calculate Triple H's 2020 and 2019 current ratio.
b) Calculate Triple H's quick ratio for 2020 and 2019.
c) Comment on Triple H's year over year liquidity position.
d) Calculate Triple H's accounts receivable turnover ratio for 2020.
e) On the average how long does it take Triple H to collect its accounts receivable? Is this good? If not, what types of things might Triple H consider in order to improve its collections?

Question

Triple H Enterprises Ltd. revealed the following information for the years ended December 31, 2020 and 2019:  Triple H Enterprise's credit terms are net 30 days.
Instructions 
a) Calculate Triple H's 2020 and 2019 current ratio.
b) Calculate Triple H's quick ratio for 2020 and 2019.
c) Comment on Triple H's year over year liquidity position.
d) Calculate Triple H's accounts receivable turnover ratio for 2020.
e) On the average how long does it take Triple H to collect its accounts receivable? Is this good? If not, what types of things might Triple H consider in order to improve its collections?

Quizplus · Accepted Answer

The Answer of Triple H Enterprises Ltd. revealed the following information for the years ended December 31, 2020 and 2019:  Triple H Enterprise's credit terms are net 30 days.
Instructions 
a) Calculate Triple H's 2020 and 2019 current ratio.
b) Calculate Triple H's quick ratio for 2020 and 2019.
c) Comment on Triple H's year over year liquidity position.
d) Calculate Triple H's accounts receivable turnover ratio for 2020.
e) On the average how long does it take Triple H to collect its accounts receivable? Is this good? If not, what types of things might Triple H consider in order to improve its collections?