Ratio
Formula
Current Ratio
Current Assets / Current Liabilities
Acid-test (quick) ratio
Cash + Short term investments + Receivables (net)
/ Current Liabilities
Receivables Turnover
Net Credit Sales / Average net receivables
Days of Receivables
365 / Rece
Worst Case Most Probable Best Case
# of hot dogs sold 100
Sales revenue (total)
Sales revenue (per unit)
Total costs:
Variable costs
Fixed costs
Total costs
Cost per unit:
Variable cost
Fixed cost
Total cost per unit
300
600
250
750
1500
2.5
2.5
2.5
125
2
From looking at the data we can see that the deluxe cabins have the highest
profitably under the traditional cost allocation system. Therefore they should
prioritize the deluxe cabins under the traditional allocation system. This is the best
system for ev
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'P2?7!§ Gerber Electronics manufactures two largerscreen television models: the Royals,
l which sells for $1,500, and a new model, the Majestic, which sells for $1,200. The production cost
l 1004 23 Process Cos-n per unit for each model in 2012 is shown
i l
RAFED REVIEW
Using the Information in the Financial Statements
Ratio
Liquidity Ratios
l. Current ratio
2, Acidetest (quick) ratio
Receivables turnover
or
4. Inventory turnover
Proitability Ratio
5. Profitmargiii
6. Asset turnover
5263 Shank Company produces golfdiscs which it normally sells to retailers for $7 each. The
cost of manufacturing 20,000 001i discs is:
,/Materials 32 10,000 95
Labor I _30,000 I v :3
Variable overhead 20.000 1
Fixed overhead 40,000 2,
Total
Chapter 17:
Understand the usefulness of the statement of cash flows Provides information about the cash receipts, cash
payments, and net change in cash resulting form the operating, investing, and financing activities of a company
during the period.
Dist