Balance sheet item:

Current Year

Preceding Year

2

Cash

$16,500

$24,500

3

Short-term investments

$10,750

$24,500

4

Net receivables

$49,000

$77,360

5

Inventory

$81,000

$78,500

6

Prepaid expenses

$21,500

$7,300

7

Total current assets

$178,750

$212,160

8

Total current liabilities

$125,000

$89,000

9

10

Income statement:

11

Net credit sales

$427,050

12

Cost of goods sold

$319,000

Current ratio

Enter the formula on the first line, then calculate the ratio on the second line. (Round your answer to two decimal places, X.XX.)

			=	Current ratio
			=

b. Acid-test ratio

Enter the formula on the first line, then calculate the ratio on the second line. (Round your answer to two decimal places, X.XX. Abbreviation used: ST = short-term.)

										Acid-test
(		+		+		)			=	ratio
(		+		+		)			=

c. Inventory turnover

Enter the formula on the first line, then calculate the turnover on the second line. (Round your answer to two decimal places, X.XX.)

			=	Inventory turnover
			=		times

d. Days' sales in average receivables

Enter the formula on the first line, then calculate the days' sales on the second line.

				Days' sales in
			=	average receivables
			=		days