E18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 Cash bae $ 15,000 Accounts receivable (net) 70,000 Inventory 60,000 Plant assets (net) 200,000 $345,000 Accounts payable $ 50,000 Mortgage payable (6%) 100,000 Common stock, $10 par 140,000 Retained earnings 55,000 $345,000 2016 $ 30,000 60,000 50,000 180,000 $320,000 $ 60,000 100,000 120,000 40,000 $320,000 Additional information for 2017: 1. Net income was $25,000. 2. Sales on account were $410,000. Sales returns and allowances were $20,000. 3. Cost of goods sold was $198,000. Instructions Compute the following ratios at December 31, 2017. (a) Current ratio. (c) Accounts receivable turnover. (b) Acid-test ratio. (d) Inventory turnover