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Question: Using ratio data to evaluate a company's financial position The comparative financial statements of Gold Cosmetic Supply for 2016, 2015, and 2014 include the data shown here:

Requirements: 1. Compute these ratios for 2016 and 2015:

a. Acid-test ratio (Round to two decimals.)

b. Accounts receivable turnover (Round to two decimals.)

c. Days' sales in receivables (Round to the nearest whole day.)

2. Considering each ratio individually, which ratios improved from 2015 to 2016 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92647801

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