Question
Balance Sheet: Current year: Proceeding year: Cash: 19000 23000 Short term investments: 19000 28000 Net Accounts Receivable: 52000 82000 Merchandise inventory: 76000 64000 Prepaid Expenses:
Balance Sheet:
Current year: Proceeding year:
Cash: 19000 23000
Short term investments: 19000 28000
Net Accounts Receivable: 52000 82000
Merchandise inventory: 76000 64000
Prepaid Expenses: 10000 6000
Total Current Assets: 176000 203000
Total Current Liabilities: 138000 93000
Income Statement: 466000
Cost of goods sold: 320000
Options for each:
The financial statements of
Victor'sVictor's
Natural Foods include the following items:
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Compute the following ratios for the current year:
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a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.)
| Current ratio | = | Total current assets / Total current liabilities | = |
|
b. Compute the cash ratio for the current year. (Round your answer to two decimal places, X.XX.)
| Cash ratio | = | (Cash + Cash equivalents) / Total current liabilities | = |
|
c. Compute the acid-test ratio for the current year. (Round your answer to two decimal places, X.XX.)
| Acid-test ratio | = | (Cash + Prepaid expenses) / Total current liabilities | = |
|
d. Compute the inventory turnover for the current year. (Round your answer to two decimal places, X.XX.)
| Inventory turnover | = | Cost of goods sold / Average merchandise inventory | = |
| times |
e. Compute the days' sales in inventory for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to the nearest whole day.)
| Days' sales in inventory | = | Cost of goods sold / Average merchandise inventory | = |
| days |
f. Compute the days' sales in receivables for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to nearest whole day.)
| Days' sales in receivables | = | (Cash + STI + Net current receivables) / Total current liabilities | = |
| days |
g. Compute the gross profit percentage for the current year. (Round your answer to one tenth of a percent, X.X%.)
| Gross profit percentage | = | 365 days / Inventory turnover | = |
| % |
The financial statements of
Victor'sVictor's
Natural Foods include the following items:
Compute the following ratios for the current year:
a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.)
| Current ratio | = | Total current assets / Total current liabilities | = |
|
b. Compute the cash ratio for the current year. (Round your answer to two decimal places, X.XX.)
| Cash ratio | = | (Cash + Cash equivalents) / Total current liabilities | = |
|
c. Compute the acid-test ratio for the current year. (Round your answer to two decimal places, X.XX.)
| Acid-test ratio | = | (Cash + Prepaid expenses) / Total current liabilities | = |
|
d. Compute the inventory turnover for the current year. (Round your answer to two decimal places, X.XX.)
| Inventory turnover | = | Cost of goods sold / Average merchandise inventory | = |
| times |
e. Compute the days' sales in inventory for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to the nearest whole day.)
| Days' sales in inventory | = | Cost of goods sold / Average merchandise inventory | = |
| days |
f. Compute the days' sales in receivables for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to nearest whole day.)
| Days' sales in receivables | = | (Cash + STI + Net current receivables) / Total current liabilities | = |
| days |
g. Compute the gross profit percentage for the current year. (Round your answer to one tenth of a percent, X.X%.)
| Gross profit percentage | = | 365 days / Inventory turnover | = |
| % |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
