The comparative financial statements of Lakeland Cosmetic Supply for Year 2 and Year 1 include the following select data

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The Comparative Financial Statements Of Lakeland Cosmetic Supply For Year 2 And Year 1 Include The Following Select Data 1 (51.88 KiB) Viewed 19 times

The comparative financial statements of Lakeland Cosmetic Supply for Year 2 and Year 1 include the following select data: i (Click the icon to view the comparative financial data.) Requirements 1. Compute these ratios for Year 2 and Year 1: a. Current ratio b. Acid-test ratio C. Average settlement period for trade payables (using year-end figures) 2. Which of the first two ratios improved from Year 1 to Year 2 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 the answer is less than 1, place a '0' in front of the decimal point.) Year 2 1 Year 1 :1 Current ratio = b. Calculate the acid-test ratio. (Round your final answer to 2 decimal places. If the answer is less than 1, place a '0' in front of the decimal point.) Year 2 :1 Year 1 :1 Acid-test ratio = c. Next, calculate the settlement period for trade payables (Round all calculations to the nearest complete day.) Year 2 Year 1 Settlement period for trade payables (creditors) Requirement 2 The first two ratios from Year 1 to Year 2. This trend days days the company. More info Statement of financial position Current assets: Inventories Prepaid expenses Trade receivables Cash Short term investments Total current assets Total current liabilities* (*all trade payables/creditors) Income statement Credit purchases Print (in thousands) Year 2 Year 1 360 335 70 20 290 260 70 60 140 170 930 845 590 620 5,870 5,120 Done