The Following Information Applies to Markham Company Additional Information: Net Credit Sales Equal $220,000 and Beginning Accounts

question 40

Short Answer

The following information applies to Markham Company:
$\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 6,000 \\\text { Accounts receivable } & 13,000 \\\text { Inventory } & 16,000 \\\text { Plant and equipment, net } & 21,000 \\\text { Land } & \underline{ 19,000 }\\\text { Total assets } &\underline{ \$ 75,000}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$5,000 \\\text { Salaries payable } &10,000 \\\text { Bonds payable (Due 2020) } & 12,000 \\\text { Capital stock, no par } & 23,000 \\\text { Retained earnings } &\underline{ 25,000} \\\text { Total liabilities and stockholders' equity }& \$75,000\end{array}$ Additional information: Net credit sales equal $220,000 and beginning accounts receivable were $11,000.
Required:
Compute Markham's: Quick ratioCurrent ratioWorking capitalAccounts receivable turnoverAverage days to collect receivables
Round your answers to two decimal places.

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