Selected Data for Stick's Design Are Given as of December

question 91

Essay

Selected data for Stick's Design are given as of December 31,Year 1 and Year 2 (rounded to the nearest hundredth).
$\begin{array}{c}\begin{array}{lll}\\ \text { Net Credit Sales}\\ \text { Cost of Goods Sold 16,000}\\ \text { Net Income}\\ \text { Cash}\\ \text { Accounts Receivable}\\ \text { Inventory}\\ \text {Current Liabilities}\end{array}\begin{array}{l}\underline{ \text { Year } 2} \\\$25,000\\18,000 \\2,000 \\5,000 \\3,000 \\2,000 \\6.000 \end{array}\begin{array}{l}\underline{\text { Year 1 }} \\\$ 30,000 \\\\2,800 \\900 \\2,000 \\3,600 \\5,000 \end{array}\end{array}$
Required: Compute the following:
a.________ Current ratio for Year 2.
b.________ Acid-test ratio for Year 2.
c.________ Accounts receivable turnover for Year 2.
d.________ Average collection period for Year 2.
e.________ Inventory turnover for Year 2.

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Definitions:

Respiratory System

The biological system in animals consisting of specific organs and structures used for gas exchange between the organism and its environment.

Mesoderm

The middle layer of an embryo in early development, giving rise to muscles, bones, and the circulatory system.

Muscle

Tissues in the body that can contract, allowing movement of body parts and organs.

Notochord

The notochord is a flexible rod-like structure that forms the main axis of the embryo in all chordates, providing support and defining the primitive axis of the embryo.