E12-32B. (Learning Objective 4: Computing five ratios) The financial statements of Advent News, Inc., include the following items:

Requirement 1. Compute the following ratios for the current year:

a. Current ratio

d. Inventory resident period

b. Acid-test ratio

e. Payable outstanding period

c. Receivable collection period

f. Cash conversion cycle

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Current Year Preceding Year Balance Sheet: Cash........... Short-term investments. $ 65,000 $ 91,000 13,000 25,000 Net receivables. 79,000 82,000 Inventory.......... 93,000 75,000 Prepaid expenses..... 6,000 12,000 Total current assets.. 256 285,000 Total current liabilities.... 133 97,000 Income Statement: Sales revenue $498,000 Cost of goods sold. 278,000