Mansfield Office Furniture Store Reported the Following Selected Items at December

question 168

Essay

Mansfield Office Furniture Store reported the following selected items at December 31,2019 (previous year - 2018 - amounts are also given as needed):
$$\begin{array} { | l | r | } \hline \text { Cash } & \$ 50,000 \\\hline \text { Accounts Receivable, net: } & \\ \text { Dec. 31, 2019 } & 75,000 \\\text { Dec. 31, 2018 } & 63,000 \\\hline \text { Accounts Payable } & 55,000 \\\hline \text { Cost of Goods Sold } & 375,000\\\hline \text { Merchandise Inventory } & \\\hline \text { Dec. 31, 2019 } &240,000 \\\text { Dec. 31, 2018 } &220,000 \\\hline \text { Net Credit Sales Revenue } &820,000 \\\hline \text { Long-Term Assets } & 320,000 \\\hline \text { Long-Term Liabilities } &240,000 \\\hline \text { Other Current Assets } & 135,000 \\\hline \text { Other Current Liabilities } &125,000 \\\hline \text { Short-term Investments } &80,000\\\hline \end{array}$$ Compute Mansfield's
(a)acid-test ratio; (b)accounts receivable turnover ratio (round to 2 decimal places); and (c)days' sales in receivables for 2019 (round to the nearest day).Show your computations.

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Definitions:

Neighborhood Barber Shop

A locally-operated business that provides hair cutting and grooming services primarily for male clients in a specified area.

Owner

The individual or entity that holds the legal right or title to an object, property, or enterprise.

Partnership

A legitimate arrangement for conducting business that necessitates shared managerial responsibilities and profits among multiple partners.

Small Law Practice

A small law practice is a legal firm with a limited number of attorneys, often specializing in specific areas of law and offering more personalized services than larger firms.