Answer only question 7.

Liquidity Analysis The following selected information is taken from the financial statements of Arnn Company for its most recent year operations: During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million. Required: Download Excel spreadsheet When required, round your answers to two decimal places. Assume 365 days per year. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. times 4. Compute the accounts receivable turnover in days. days 5. Compute the inventory turnover ratio. times 6. Compute the inventory turnover in days. days 7. Now assume the following account balance changes: - Beginning inventory increases to $300,000 - Ending accounts receivable decreases to $200,000 - Accounts payable increases to $475,000 Given these three assumptions, recalculate each of the ratios in Requirements 1 through 6