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The Following Data Were Shown in the Records of Morgan

Question 119

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The following data were shown in the records of Morgan Company at the end of 20B:
The following data were shown in the records of Morgan Company at the end of 20B:    Compute the following ratios (a) Quick ratio: (b) Current (working capital) ratio: (c) Receivable turnover: (d) Inventory turnover: (e) Average age of receivables (f) Average days' supply in inventory Compute the following ratios
(a) Quick ratio:
(b) Current (working capital) ratio:
(c) Receivable turnover:
(d) Inventory turnover:
(e) Average age of receivables
(f) Average days' supply in inventory

Correct Answer:

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(a) $180,000/$50,000 = 3.6 to ...

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