Shirlen Company has the following partial list of account balances at year end:
Required:
A. Determine the amount of working capital.
B. Assume that cash is used to pay the balance due on trade payables. Compute the new amount of working capital.
C. Compute the trade payables turnover ratio.

Question

Shirlen Company has the following partial list of account balances at year end:
  Required:
A. Determine the amount of working capital.
B. Assume that cash is used to pay the balance due on trade payables. Compute the new amount of working capital.
C. Compute the trade payables turnover ratio.

Quizplus · Accepted Answer

The Answer of Shirlen Company has the following partial list of account balances at year end:
  Required:
A. Determine the amount of working capital.
B. Assume that cash is used to pay the balance due on trade payables. Compute the new amount of working capital.
C. Compute the trade payables turnover ratio.

Shirlen Company Has the Following Partial List of Account Balances