Cash Accounts Receivables Inventories Accounts payable 2017 85,000 63,000 37,000 40,000 Calculate the Current Ratio and Quick Ratio for the company for 2017. (3*2=6 marks) Ratio=ormulas) 1. Current Ratio = Current Assets / Current Liabilities 2. Quick Ratio = (Current Assets Inventory) / Current Liabilities 3. Inventory Turnover = Cost of goods sold / Inventory 4. Days' Sales in Inventory = 365 / Inventory Turnover 5. Receivables Turnover = Sales / Accounts Receivable 6. Days' Sales in Receivables = 365 / Receivables Turnover 7. Fixed Asset Turnover = Sales / Fixed Assets 8. Total Asset Turnover = Sales/Total Assets 9. Debt-to-Total Assets Ratio = Total Debt/ Total Assets 10. Debt/Equity = Total Debt / Total Equity 11. Times Interest Earned = EBIT / Interest 12. Profit Margin = Earnings before tax / Sales 13. Return on Assets (ROA) = EBIT / Total Assets 14. Return on Equity (ROE) = Earnings after tax / Total Equity