Problem 1. The following information applies to Barnhart
- Net Credit Sales = $220,000
- Beginning Accounts Receivable =
1) Compute Barnhart’s:
a) Quick ratio
b) Current ratio
c) Working capital
d) Accounts receivable turnover
e) Average days to collect receivables
2. The Jiffy Manufacturing
Company started operations in 2012 when it acquired $100,000 from its owners.
During the year, the company incurred the following costs:
The company placed 12,000 units into production, completed 10,000 units, and
sold 8,000 units. The average selling price was $17 per unit.
1) Prepare a schedule of cost of goods manufactured and sold for the year ended
December 31, 2012.
2) Prepare an income statement for the year ended December 31, 2012.