Ronald Company Has Current Assets of $115,000 and Current Liabilities

question 179

Essay

Ronald Company has current assets of $115,000 and current liabilities of $75,000 of which accounts payable are $65,000. Arnold's cost of goods sold is $420,000, its merchandise inventory increased by $20,000, and accounts payable were $45,000 the prior year. Calculate Ronald's working capital, payables turnover, and days' payable.

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Definitions:

Decrease

A decrease refers to a reduction in size, number, value, or amount of a particular item or entity over time.

Percent Less

A term used to indicate a reduction in amount or rate by a specified percentage.

Increased By

A term describing how an amount is made larger or expanded in size, volume, number, or extent.

Reduction

A decrease in the amount, size, or intensity of something, often referring to prices, costs, or risks.