Vista Inc.had the following balances in selected accounts at the end of 2016 and 2017.
The accounts receivable at the end of 2015 were $50,000 and the allowance for uncollectible accounts was $2,500.
Required:
a.Calculate the acid test ratio for 2016 and 2017 for Vista Inc.
b.Calculate the days' sales in receivables for 2016 and 2017 for Vista Inc.
c.Determine whether the acid-test ratio improved or deteriorated from 2016 to 2017.
d.Determine whether the collection period increased or decreased from 2016 to 2017.

Question

Vista Inc.had the following balances in selected accounts at the end of 2016 and 2017.
  The accounts receivable at the end of 2015 were $50,000 and the allowance for uncollectible accounts was $2,500.
Required:
a.Calculate the acid test ratio for 2016 and 2017 for Vista Inc.
b.Calculate the days' sales in receivables for 2016 and 2017 for Vista Inc.
c.Determine whether the acid-test ratio improved or deteriorated from 2016 to 2017.
d.Determine whether the collection period increased or decreased from 2016 to 2017.

Quizplus · Accepted Answer

The Answer of Vista Inc.had the following balances in selected accounts at the end of 2016 and 2017.
  The accounts receivable at the end of 2015 were $50,000 and the allowance for uncollectible accounts was $2,500.
Required:
a.Calculate the acid test ratio for 2016 and 2017 for Vista Inc.
b.Calculate the days' sales in receivables for 2016 and 2017 for Vista Inc.
c.Determine whether the acid-test ratio improved or deteriorated from 2016 to 2017.
d.Determine whether the collection period increased or decreased from 2016 to 2017.

Vista IncHad the Following Balances in Selected Accounts at the End