ch13textproblems - Chapter 13 Solutions Quick Study 13-4...

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Chapter 13 Solutions Quick Study 13-4 2008 2007 Dollar Change Percent Change Short-term investments. .... $220,000 $160,000 $60,000 37.5% Accounts receivable. ......... 38,000 44,000 (6,000) -13.6% Notes payable. .................... 60,000 0 60,000 (not calculable) Exercise 13-1 2010 2009 2008 2007 2006 Sales. ............................... 189 181 168 156 100 Cost of goods sold. ........ 191 182 172 159 100 Accounts receivable. ..... 201 192 182 169 100 Analysis : The trend in sales is positive. While this is better than no growth, one cannot definitively say whether the sales trend is favorable without additional information about the economic conditions in which this trend occurred such as inflation rates and competitors’ performances. Given the trend in sales, the comparative trends in both cost of goods sold and accounts receivable are somewhat unfavorable. In particular, for the most recent year, both are increasing at slightly faster rates (indexes for cost of goods sold is 191 and accounts receivable is 201) compared to sales (index is 189).
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ch13textproblems - Chapter 13 Solutions Quick Study 13-4...

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