The following income statement and balance sheet for The Athletic Attic are provided. Required: Assuming that all

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The following income statement and balance sheet for The Athletic Attic are provided.
The following income statement and balance sheet for The Athletic
The following income statement and balance sheet for The Athletic

Required:
Assuming that all sales were on account, calculate the following risk ratios for 2012:
1. Receivables turnover ratio.
2. Average collection period.
3. Inventory turnover ratio.
4. Average days in inventory.
5. Current ratio.
6. Acid-test ratio.
7. Debt to equity ratio.
8. Times interest earned ratio.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
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Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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