The comparative financial statements of Big Rig Truck Supply for 2025, 2024, and 2023 include the data shown here: 

Requirements 

1. Compute these ratios for 2025 and 2024: 

a. Acid-test ratio (Round to two decimals.) 

b. Accounts receivable turnover (Round to two decimals.) c. Days’ sales in receivables (Round to the nearest whole day.) 

2. Considering each ratio individually, which ratios improved from 2024 to 2025 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?

Transcribed Image Text:

Balance sheet-partial Current Assets: Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) 2025 2024 2023 $ 60,000 $ 50,000 $ 60,000 155,000 155,000 120,000 300,000 240,000 260,000 355,000 320,000 320,000 75,000 25,000 55,000 945,000 790,000 815,000 590,000 580,000 680,000 5,830,000 5,110,000 4,210,000