5. Cash ratio =CurrentliabilitiesCash+Marketablesecurities(3 points ) Page 1 of 4 6. Inventory tumover ratio =AverageinventoryCostofgoodssold(4 points ) 7. Accounts receivable turnover ratio =Averagenet(accounts)receivableNetcreditsales(4 points ) 9. Accounts payable turnover ratio =AverageaccountspayableCreditPurchases(4 points ) The company had credit purchases of $740,000 for the current year. 10. Working capital = Current assets - Current liabilities (2 points ) (This is the amount of capital the company can operate or work with for the current period after paying current liabilities with current assets.) Page 3 of 4 2. Return on (stockholders') equity (ROE)=Averagetotal(stockholders)equityNetoncome(4 points) 3. Current ratio =CurrentliabilitiesCurrentassets(2 points ) 4. Acid-test ratio (=quick ratio) =CurrentliabilitiesCash+Marketablesecurities+Netaccountsreceivables (4 points) 5. Cash ratio =CurrentliabilitiesCash+Marketablesecurities(3 points )