Willingham Ltd. has the following comparative statements of financial position data.

Additional information for 2025:
1. Net income was £28,000.
2. Sales on account were £418,000. Sales returns and allowances were £22,000.
3. Cost of goods sold was £190,000.
Instructions Compute the following ratios at December 31, 2025.

a. Current ratio.

b. Acid-test ratio.

c. Accounts receivable turnover.

d. Inventory turnover.
Compute selected ratios.

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Willingham Ltd. Statements of Financial Position December 31 2025 2024 Plant assets (net) Inventory Accounts receivable (net) Cash 205,000 190,000 60,000 50,000 70,000 50,000 10,000 30,000 345,000 320,000 Share capital-ordinary, 10 par 140,000 120,000 Retained earnings 55,000 40,000 Mortgage payable (6%) 100,000 100,000 Accounts payable 50,000 60,000 345,000 320,000