Answer Happy

The comparative financial statements of Paradise Cosmetic Supplies Ltd. for 2018 and 2017 include the following select data: i (Click the icon to view the comparative financial data.) Requirement 1: Compute these ratios for 2018 and 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? 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.) 2017 :1 2018 :1 Current ratio = 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.) 2017 :1 2018 :1 Acid-test ratio = 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 = Requirement 2: The three ratios ▼the company. days days from 2017 to 2018. This trend More info Statement of financial position Current assets: Inventories Trade receivables Loans Bank Cash Total current assets Total current liabilities Statement of income Revenue Print £(000) £(000) 2018 2017 370 290 55 80 150 165 945 865 590 610 5,860 5,130 Done 345 270 15 70 X