Use the selected data from Pinecrest Company's financial statements to answer the following question. 2017 2016 Cash $ 22,000 $ 14,000 Accounts receivable 42,000 16,000 Merchandise inventory 22,000 83,000 Prepaid expenses 23,000 18,000 Total current assets $109,000 $131,000 Total current liabilities $ 65,000 $ 72,000 Net credit sales 221,000 326,000 Cost of goods sold 168,000 299,000 Net cash
flow from operating activities 16,000 29,000 Refer to the data for Pinecrest Company. Which of the following statements is true?
a. The current ratio increased from 2016 to 2017.
b. The acid-test ratio decreased from 2016 to 2017.
c. The amount of working capital decreased from 2016 to 2017.
d. Assuming extreme conditions do not exist, the company appears to be in a worse position to pay its current debts at the end of 2017 compared to 2016.
c
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On November 2, 2014, Quaint General Store concluded that a customer's $400 account receivable was uncollectible and that the account should be written off. What effect will this writeoff have on Quaint's 2014 net income and balance sheet totals assuming the allowance method is used to account for bad debts?
a. Decrease in net income; decrease in total assets b. Increase in net income; no effect on total assets c. No effect on net income; decrease in total assets d. No effect on net income; no effect on total assets
Describe the Consolidated Omnibus Budget Reconciliation Act of 1985
What will be an ideal response?
A point of equilibrium is a value that is simultaneously the minimum of a row and the maximum of a column
Indicate whether this statement is true or false.
The key outputs of the short-term financial planning process are the ________
A) cash budget, pro forma income statement, and pro forma balance sheet B) sales forecast and capital assets journal C) sales forecast and schedule of changes in working capital D) income statement, balance sheet, and source and use statement