Ponderosa Crafts has provided the following data:

Requirement
Compute the following ratios for the current year for Ponderosa Crafts:
a. Current ratio
b. Acid-test ratio
c. Inventory turnover
d. Days' sales in average receivables (assume all sales are on credit)

Transcribed Image Text:

Balance sheet item: Current year Preceding year 23,500 24,000 77,360 78,500 8,000 211,360 86,000 Cash 16,500 $ 10,750 $ 49,000 $ 81,000 $ 21.500 $ 178,750 $ 125,000 $ Short-term investments Net receivables Inventory Prepaid expenses 2$ Total current assets Total current liabilities 10 Income statement: 11 Net credit sales 427,050 319,000 Cost of goods sold 12 13