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:

Garnishee

A legal process that allows a creditor to seize the assets of a debtor held by a third party.

Annual Rate

The annual rate is the interest percentage that is charged or earned over the course of a year, often used in the contexts of loans, investments, and savings.

Breach of Contract

The inability to meet a condition of any contract, written or spoken, in the absence of a legal justification.

Federal Court

A court established by the federal government with jurisdiction over disputes involving federal laws, interstate matters, or cases involving parties from different states.