Shown below are selected financial data for Company a and Company B at the end of the current Company A Net credit sales 675,000 Cost of goods sold 504,000 Cash 53,000 Accounts receivable 75,000 Inventory 84,000 Current liabilities 105,000 Company B Net credit sales 560,000 Cost of goods sold 480,000 Cash 22,000 Accounts receivable 70,000 Inventory 160,000 Current liabilities 100,000 A) for each of the companies compute the 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company a or b and why
Shown below are selected financial data for Company a and Company B at the end of the current Company A Net credit sales 675,000 Cost
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