Chapter 11
Financial Statement Analysis
553
AP-9A (
5
)
At the end of 2016, accounts receivable amounted to $200,000. At the beginning of the year,
it was $165,000. Net credit sales for the year amounted to $813,000 and net income was
calculated to be $229,000.
Determine the days sales outstanding ratio and the accounts receivable turnover ratio.
Comment on the ability of the company to enforce its credit policy of 60 days.
AP-10A (
3
)
Selected financial data from Crew Company is provided below.
As at
December 31, 2016
Cash
$75,000
Accounts Receivable
$225,000
Merchandise Inventory
$270,000
Short-Term Investments
$40,000
Land and Building
$500,000
Current Portion of Non-Current Debt
$30,000
Accounts Payable
$120,000
Required
a) Calculate the quick ratio.
