Willingham Company has the following comparative balance sheet data.

Willingham Company Balance Sheets December 31 2014 2013 Cash $ 10,000 $ 30,000 Accounts receivable (net) 70,000 50,000 Inventory 60,000 50,000 Plant assets (net) 205,000 190,000

$345,000 $320,000 Accounts payable $ 50,000 $ 60,000 Mortgage payable (15%) 100,000 100,000 Common stock, $10 par 140,000 120,000 Retained earnings 55,000 40,000

$345,000 $320,000 Additional information for 2014:

1. Net income was $25,000.

2. Sales on account were $410,000. Sales returns and allowances were $20,000.

3. Cost of goods sold was $187,000.

Instructions Compute the following ratios at December 31, 2014.

(c) Accounts receivable turnover.

(d) Inventory turnover.

(a) Current.

(b) Acid-test.