The financial statements of Morton’s Natural Foods include the following items: 

Compute the following ratios for the current year: 

a. Current ratio 

b. Cash ratio 

c. Acid-test ratio 

d. Inventory turnover 

e. Days’ sales in inventory 

f. Days’ sales in receivables 

g. Gross profit percentage

Transcribed Image Text:

Balance Sheet: Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold Current Year $ 15,000 11,000 54,000 77,000 15,000 172,000 133,000 $ 462,000 315,000 Preceding Year $ 20,000 27,000 73,000 69,000 9,000 198,000 93,000