Tony Chang gives good customers a cash discount of 1.5 on any ...

[lunatika]

Tony Chang gives good customers a cash discount of 1.5 on any amount that they pay within 5 days of the invoice date. An invoice for 1,890 was written on February 2 . The customer paid 900 on February 6 . Compute the amount that Tony must credit to his customer's account. (This problem involves the partial payment of an invoice within the discount period.)

Question 2

Warm Winters Linen, Inc had current liabilities of 500,000 . cash of 300,000 . accounts receivable of 150,000 . and ending inventory of 250,000 . Compute the working capital ratio. (Round answer to two decimal places.)

[k.lashomb]

Answer to Question 1

100 . - 1.5 = 98.5
900 0.985 = 913.71 credited

Answer to Question 2

1.4:1