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:

Operant Conditioning

A learning scheme in which the adjustment in behavior potency is achieved by incentive provision or penalty imposition.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censoring themselves, intended to uncover unconscious thoughts and feelings.

Mental Hospitals

Healthcare facilities specializing in the treatment and care of individuals with psychiatric disorders, providing both inpatient and outpatient services.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology.