Financial Statement Analysis Calculate ratios; evaluate turnover, liquidity, and current debt-paying ability The financial statements of Explorer News, Inc., include the following items: 2017 2016 2018 Balance sheet: 77,000$ 103,000 Cash Short-term investments 18,000 20,000 Net receivables 81,000 84,000 35,000 Inventory 96,000 70,000 58,000 Prepaid expenses 7,000 6,000 Total current assets 279,000 283,000 Accounts payable 45,000 35,000 40,000 Total current liabilities 130,000 97,000 Income statement: $493,000 507,000 Net credit sales Cost of goods sold 280,000 278,000 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirement For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days) Use the cost of goods sold in the formula for accounts payable turnover a. b. Use a 365-day year for calculations as needed C.Use cell references from prior calculations, if applicable For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 2017 2018 Current ratio Quick (acid-test) ratio Inventory turnover Days' inventory outstanding (DIO) Receivables turnover Days' sales outstanding (DSO) Payables turnover Days' payable outstanding (DPO) Cash conversion cycle improved deteriorated cash short-term investments sales inventory on hand payables cost of goods sold inventory turnover collection of accounts receivable payables turnover cash conversion