Chapter 4 The Balance Sheet (1): Assets 11. The balance sheet of Steel Traders Inc. as at December 31, 2020, was as follows: Current assets Cash Receivables Inventory Total Long-term assets Total $ 50,000 450,000 425.000 $ 925,000 500,000 $1.425.000 Current liabilities Trade payables Bank loan Income tax due Total Long-term liabilities Total liabilities Equity Share capital Retained earnings Total Total $ 165,000 180,000 55,000 $ 400,000 Required (a) Calculate the following ratios: (i) Current ratio (ii) Quick ratio (iii) Receivables turnover ratio (iv) Receivables collection period 450.000 $ 850.000 $ 175,000 400.000 $ 575.000 $1.425.000 You are told that the sales revenue for 2020 was $9,800,000 and that the company made a net income of $500,000 in 2020.

Chapter 4 The Balance Sheet (1): Assets 11. The balance sheet of Steel Traders Inc. as at December 31, 2020, was as follows: You are told that the sales revenue for 2020 was $9,800,000 and that the company made a net income of $500,000 in 2020. Required (a) Calculate the following ratios: (i) Current ratio (ii) Quick ratio (iii) Receivables turnover ratio (iv) Receivables collection period