Vista Inc Had the Following Balances in Selected Accounts at the the End

question 24

Essay

Vista Inc. had the following balances in selected accounts at the end of 2013 and 2014.
The accounts receivable at the end of 2012 were $50,000 and the allowance for uncollectible accounts was $2,500.
Required:
a. Calculate the acid test ratio for 2013 and 2014 for Vista Inc.
b. Calculate the days' sales in receivables for 2013 and 2014 for Vista Inc.
c. Determine whether the acid-test ratio improved or deteriorated from 2013 to 2014.
d. Determine whether the collection period increased or decreased from 2013 to 2014.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.

Concise Messages

Communication that provides necessary information in a clear and brief manner, without unnecessary words or details.

Rubber Stamps

Tools with raised letters or designs used to apply inked impressions on surfaces, often used for administrative or craft purposes.

Preachy Tone

An overly moralistic or instructive tone in writing or speech, often perceived as annoying or condescending.