Paradise
Cosmetic Supplies Ltd. for
2018
and
2017
include the following select data:
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financial data.)
Requirement 1:
2018
2017:
a.
Current ratio
b.
Acid-test ratio
c.
Settlement period for trade receivables
Requirement 2:
Which ratios improved from
2017
to
2018
and which ratios deteriorated? How does this trend affect
the company?
Question content area bottom
Part 1
Requirement 1:
a. Calculate the current ratio. (Round your final answer to 2
decimal places. If an answer is less than 1, place
a '0' in front of the decimal point.)
2018
2017
Current ratio
=
enter your response here:1
enter your response here:1
Part 2
b. Calculate the acid-test ratio. (Round your final
answer to 2 decimal places. If an answer is less than 1,
place a '0' in front of the decimal point.)
2018
2017
Acid-test ratio
=
enter your response here:1
enter your response here:1
Part 3
c. Next calculate the settlement period for trade
receivables. (Round all calculations to the nearest complete
day. Use year end figures for consistency)
2018
2017
Settlement period for trade receivables
=
enter your response here
enter your response here
Part 4
Requirement 2:
The three ratios
▼
improved
deteriorated
stayed the same
from
2017
to
2018.
This trend
▼
does not impact on
is unfavourable for
is favourable for
- The Comparative Financial Statements Of Paradise Cosmetic Supplies Ltd For 2018 And 2017 Include The Following Select 1 (108.87 KiB) Viewed 16 times