George Kambouris &0000001841 BLACC 210 FINANCIAL STATEMENT ANALYSIS PRACTICE SET AND FELX AND CAPITAL BUDGETING [Compatibility Mode Mailing Review View Tell me what you want to do ended December 31, 2017 and 2016 appear below! Cash Accounts receivable (net) Inventory Prepaid insurance Total Current Assets Non-Current Assets Total assets 2017 $ 70,000 180,000 150,000 20.000 420,000 780.000 200.000 2016 $ 60,000 220,000 450,000 25.000 755,000 45.000 800.000 200,000 300.000 500,000 700 000 1.200.000 110,000 300.000 410.000 390.000 800.000 Current liabilities Long-term debt Total Liabilities Stockholder's Equity Total Liabilities and Stockholder's Equity Net credit sales Cost of goods sold Interest expense Income tax expense Net income 1,800,000 900,000 50,000 80,000 120,000 700,000 530,000 25,000 29,000 85.000 Required a) Compute the following ratios for 2017. Show your calculations b) Provide an explanation for each ratio 1) Current rato Current assets/current liabilities 2) Quick Ratios Current assets inventory/current liabilities 3) Receivables turnover Sales/ Average accounts receivable 4) Days sales outstanding = 365 / receivables turnover 5) Inventory tumover Cost of goods sold / Average Inventory 6) Days inventory on hand 385/inventory turnover 7) Rate of return on assets Not income average total assets 8) Profit margin on sale Net Income / Total sales O BI