The following information applies to Barnhart Company
Assets 5000
Cash 12000
Accounts receivable 15000
Plant and equipment, net of depreciation 20,000
Land 18000
Total assets 70000
Liabilities and stockholders' equity
Accounts payable 4000
Salaries payable 9000
Bonds payable (due 2020) 11000
Capital Stock, no par 22000
Retained earnings 24000
Total liabilities and stockholders' equity 70000
Additional information: Net Credit Sales = $220,000; Beginning Accounts Receivable =
$10,000.
Required:
Compute Barnhart's
a) Quick ratio
b) Current ratio
c) Working capital
d) Accounts receivable turnover
e) Average days to collect receivables
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