In addition to the information from S12-6, assume that cash on the 2010 balance sheet was \($20,000\) and current liabilities totaled \($24,000.\) Compute the following ratios for 2010:

1. Current ratio 2. Quick ratio

12-6

The 2009 and 2010 balance sheets for Jackson and Sons showed net accounts receivable of \($10,000\) and \($14,000,\) respectively, and inventory of \($8,000\) and \($6,000,\) respectively. The company’s 2010 income statement showed net sales of \($109,500\) and cost of goods sold of \($70,000.\) Compute the following ratios for 2010:

1. Accounts receivable turnover 2. Days’ sales in receivables 3. Inventory turnover