Moore Company Has the Following Partial List of Account Balances

question 18

Essay

Moore Company has the following partial list of account balances at year-end December 31,2019:
Additional information: The accounts payable balance at the end of the prior year was $3,000.
(All answers are for December 31,2019. )
A.Determine the following items:
1.Current assets
2.Current liabilities
3.Working capital
4.Accounts payable turnover ratio
5.Average age of accounts payable
B.Assume that cash is used at December 31,2019,to pay the entire balance of accounts payable.Determine the revised amounts from part (A)above for the following items:
1.Current assets
2.Current liabilities
3.Working capital
4.Accounts payable turnover ratio
5.Average age of accounts payable
C.Comment on the effect of paying accounts payable at year-end with regard to working capital and accounts payable management.

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Definitions:

Spinal Cord

A major part of the central nervous system which extends from the base of the brain through the vertebral canal and is responsible for transmitting nerve signals between the brain and the rest of the body.

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.

Impaired Memory

A reduction in the ability to remember information or events, which can be temporary or permanent.