70.2K

Verified Solution

Link Copied!

Seminole Corporation reported the following items at December 31, 2018, and 2017 (Click the icon to view the comparative financial information.) Read the requirements Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2018. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days. (a) Enter the formula and calculate the quick (acid-test) ratio for 2018. (Abbreviation used: Cash Cash and cash equivalents. Round your final answer to two decimal places.) Cash + Short-term investments - Net current receivables Total current liabilities Quick (acid-test) ratio Requirements 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2018. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days. 2. Recommend two ways for Seminole to speed up its cash flow from receivables Print Done Data Table Balance Sheets (Summarized) Year End Year End 2018 2017 Current assets: 15,000 $ 104,000 2018 2017 Current liabilities: $ 13,000 $ 9,000 Accounts payable 24,000 13,000 Other current liabilities 56,000 70,000 Long-term liabilities 191.000 187,000 6,000 6,000 Stockholders' equity 10,000 $ 290,000 $295,000 Total liabilities and equity 16,500 106,000 21,000 Cash Marketable securities Accounts receivable, net Inventory Other current assets Long-term assets Total assets 20,000 151,000 151,500 $ 290,000 $ 295,000 Income Statement (partial): 2018 Sales revenue $ 819,000 Print Done

Answer & Explanation Solved by verified expert

See Answer