- Liverpool Carpets Reported The Following Amounts In Its 20x8 Financial Statements The 20x7 Figures Are Given For Compar 1 (53.68 KiB) Viewed 13 times
Liverpool Carpets reported the following amounts in its 20X8 financial statements. The 20X7 figures are given for comparison. i (Click the icon to view the comparative financial information.) Required 1. Determine whether Liverpool's acid-test ratio improved or deteriorated from 20X7 to 20X8. How does Liverpool's acid-test ratio at the end of 20X8 compare with the industry average of 0.80? 2. Compare the receivables' settlement period for 20X8 with Liverpool's usual credit terms of 30 days. Requirement 1 Calculate Liverpool's acid-test ratios for 20X8 and 20X7. (Round the ratios to two decimal places. Enter a zero before decimals that are less than one.) 20X8 20X7 :1 Acid-test ratios = :1 The acid-test ratio between 20X7 and 20X8. The
company's 20X8 acid-test ratio is the industry average of 0.80. Requirement 2 Calculate Liverpool's receivables settlement period, in days, for 20X8. (Round your answer to the nearest whole number.) 20X8 Receivables settlement period = days Liverpool's receivables settlement period the
company's net 30-day credit period. More info Current assets: Inventories Trade receivables Short-term loans Bank current account Cash Total current assets. Total current liabilities Sales revenue Print C 20X8 £ 189,000 193,000 49,000 63,000 2,000 2,000 23,000 12,000 2,000 8,000 269,000 274,000 104,000 106,000 732,000 735,000 Done 20X7 £ - X