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Homewood Company has the following partial list of account balances at year-end: Compute the quick...

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Accounting

Homewood Company has the following partial list of account balances at year-end: Compute the quick ratio

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Homework 4 Accounting and Financial Reporting Professor Dalton Tong Carey Business School 1) Homewood Company has the following partial list of account balances at year-end: $1,500 Accounts payable 4,600 Accounts receivable 3.200 Cost of goods sold 23.000 Cash Taxes payable 10,000 Land 25,000 Notes payable (due in 6 months) 1.000 Salaries payable 900 Inventory 4,300 Requirements: A Compute the quick ratio. B. Determine the amount of working capital. C. Assume that cash is used to pay the balance due on accounts payable. 1. Compute the new quick ratio. 2. Compute the new amount of working capital. D. Compute the accounts payable turnover ratio (use year-end amounts.) Note: For question D, we do not have beginning balance in question1, so you could use" 1500"as the average Accounts Payable, and"3200" as the numerator to calculate the accounts payable turnover ratio

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