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:

Administrative Burden

The workload and stress associated with managing organizational policies, procedures, and paperwork.

Increased Uniformity

The process of making aspects such as procedures, policies, or products more consistent and standardized across an organization or industry.

Physiological Needs

Basic physical requirements for human survival, such as food, water, and shelter.

Security Needs

The requirement for physical and emotional safety and stability, considered a fundamental human need driving behavior and decision-making.