Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Sales on account during the year totaled $1,200 thousand. Cost of goods sold was $800 thousand.
Required:
Compute the following for Year 2:
a. Working capital.
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.

Question

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below:  Sales on account during the year totaled $1,200 thousand. Cost of goods sold was $800 thousand.
Required:
Compute the following for Year 2:
a. Working capital.
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.

Quizplus · Accepted Answer

The Answer of Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below:  Sales on account during the year totaled $1,200 thousand. Cost of goods sold was $800 thousand.
Required:
Compute the following for Year 2:
a. Working capital.
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.

Excerpts from Candle Corporation's Most Recent Balance Sheet (In Thousands