Selected financial statement data for Oran Company are presented below.
During 2014,net sales were $950,000,and cost of goods sold was $775,000.
Required:
a.Compute the following ratios at December 31,2014:
1 Current
2 Acid-test
3 Average collection period
4 Average days to sell inventory
b.Assume credit terms are 2/10,net 30.What conclusion could an analyst draw about the management of accounts receivable?
Unit 12-3,

Question

Selected financial statement data for Oran Company are presented below.
  During 2014,net sales were $950,000,and cost of goods sold was $775,000.
Required: 
a.Compute the following ratios at December 31,2014:
1 Current
2 Acid-test
3 Average collection period
4 Average days to sell inventory
b.Assume credit terms are 2/10,net 30.What conclusion could an analyst draw about the management of accounts receivable?
Unit 12-3,

Quizplus · Accepted Answer

The Answer of Selected financial statement data for Oran Company are presented below.
  During 2014,net sales were $950,000,and cost of goods sold was $775,000.
Required: 
a.Compute the following ratios at December 31,2014:
1 Current
2 Acid-test
3 Average collection period
4 Average days to sell inventory
b.Assume credit terms are 2/10,net 30.What conclusion could an analyst draw about the management of accounts receivable?
Unit 12-3,

Selected Financial Statement Data for Oran Company Are Presented Below