From the data given calculate the following. (Round to the nearest hundredth or hundredth of a percent
Question:
From the data given calculate the following. (Round to the nearest hundredth or hundredth of a percent as needed.)
a. Current ratio
b. Acid test ratio
c. Asset turnover ratio
d. Gross profit rate
Net Sales ............................................$270,000
Current Assets........................................ 52,000
Gross Profit......................................... 108,000
Current Liabilities.................................... 17,000
Total Assets.......................................... 170,000
Merchandise Inventory ................................5,000
Prepaid Expenses..................................... 12,000
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For 
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
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