Homework answers / question archive / Shown below are selected financial datafor Company A and Company B at the end of the current year:   Company A Company B Net credit sales $675,000 $560,000 Cost of goods sold 504,000 480,000 Cash 53,000 22,000 Accounts receivable (net) 75,000 70,000 Inventory 84,000 160,000 Current liabilities 105,000 100,000 a)For each of the two companies, compute the following and FILL THE TABLE(10 points)   Company A Company B Working capital     Current ratio     Quick ratio     Accounts receivable turnover rate     Inventory turnover rate     Working capital: Company A: Company B: Current ratio: Company A: Company B: Quick ratio: Company A: Company B: Accounts receivable turnover rate Company A: Company B: Inventory turnover rate Company A: Company B: b)To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B

Shown below are selected financial datafor Company A and Company B at the end of the current year:   Company A Company B Net credit sales $675,000 $560,000 Cost of goods sold 504,000 480,000 Cash 53,000 22,000 Accounts receivable (net) 75,000 70,000 Inventory 84,000 160,000 Current liabilities 105,000 100,000 a)For each of the two companies, compute the following and FILL THE TABLE(10 points)   Company A Company B Working capital     Current ratio     Quick ratio     Accounts receivable turnover rate     Inventory turnover rate     Working capital: Company A: Company B: Current ratio: Company A: Company B: Quick ratio: Company A: Company B: Accounts receivable turnover rate Company A: Company B: Inventory turnover rate Company A: Company B: b)To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B

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Shown below are selected financial datafor Company A and Company B at the end of the current year:

	Company A	Company B
Net credit sales	$675,000	$560,000
Cost of goods sold	504,000	480,000
Cash	53,000	22,000
Accounts receivable (net)	75,000	70,000
Inventory	84,000	160,000
Current liabilities	105,000	100,000

a)For each of the two companies, compute the following and FILL THE TABLE(10 points)

	Company A	Company B
Working capital
Current ratio
Quick ratio
Accounts receivable turnover rate
Inventory turnover rate

Working capital:

Company A:

Company B:

Current ratio:

Company A:

Company B:

Quick ratio:

Company A:

Company B:

Accounts receivable turnover rate

Company A:

Company B:

Inventory turnover rate

Company A:

Company B:

b)To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B.? Why?Explain (5 points)