Computing five ratios The financial statements of Paramour News, Inc., include the following items: Balance Sheet: Cash Short-term investments ............ Net receivables Inventory....... Prepaid expenses..... Total current assets. Total current liabilities.. Income Statement: Sales revenue Cost of goods sold Requirement Compute the following ratios for the current year: a. Current ratio b. Acid-test ratio c. Receivable collection period Current Year Preceding Year $ 52,000 28,000 100,000 188,000 18,000 386,000 258,000 $980,000 548,000 $ 64,000 40,000 146,000 152,000 16,000 418,000 192,000 d. Inventory resident period e. Payable outstanding period f. Cash conversion cycle