Assume that for the 2017 fiscal year, AstroCo reported sales revenue of $2.8 billion and cost of goods sold of $1.6 billion.

Required:

Assuming that all sales are on credit, compute the current ratio (rounded to two decimal places), inventory turnover ratio (rounded to one decimal place), and accounts receivable turnover ratio (rounded to one decimal place) for 2017. Explain what each ratio means for AstroCo.

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Fiscal Year 2017 2016 (in millions) Balance Sheet $70 $ 35 Cash Accounts Receivable, less allowance of $15 and $15 430 410 240 Inventories 230 Prepaid Expenses 10 15 Other Current Assets 410 345 Accounts Payable 95 65 Wages Payable 50 60 Income Tax Payable 10 70 210 Other Current Liabilities 205