The following financial information is for Priscoll Company.
Additional information:
1. Inventory at the beginning of 2018 was $115,000.
2. Accounts receivable (net) at the beginning of 2018 were $86,000.
3. Total assets at the beginning of 2018 were $660,000.
4. No common stock transactions occurred during 2018 or 2019.
5. All sales were on account.
Instructions
(a) Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2018 to 2019.
(b) The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2019, and (2) as of December 31, 2020, after giving effect to the situation.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com