Information from River Corporation's balance sheet at December 31, 2008, and income statement for the year ended December 31, 2008, is as follows:
Cash
$
15,000
Cost of Goods Sold
515,000
Unearned Revenue
25,000
Rent Expense
24,000
Accounts Receivable, net
115,000
Accounts Payable
13,000
Equipment, net
165,000
Interest Payable
1,780
Net Income
48,000
Inventory
212,000
Salaries Payable
12,000
Short-term Investments
8,000
Office Supplies
1,250
Prepaid Insurance
6,000
Land
35,000
Long-term Notes Payable
60,000
Sales Revenue
1,825,000
Interest Expense
1,350
Insurance Expense
800
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Requirement 1:
Calculate River Corporation's current and quick ratios. (Round answer to 2 decimal places.)
Current ratio
Quick ratio
Requirement 2:
Calculate the corporation's accounts receivable turnover ratio. The Accounts Receivable balance at December 31, 2007, was $122,000. (Round answer to 2 decimal places.)
Accounts receivable turnover
Requirement 3:
On average, how many days does it take River to collect its receivables? (Round answer to 2 decimal places.)
Days to collect receivables
2007-11-16
09:59:35
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4 answers
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asked by
pantherbaseball14
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Other - Business & Finance