Homework: Chapter 12 Homework The financial statements of Smith News, Inc., include the following items (Click the icon to view the financial statements) Read the requirements Requirement 1. Calculate the following ratios for 2021 and 2020. When calculating days, round your answer to the nearest whole number a. Current ratio Select the formula and then enter the amounts to calculate the current ratio (Round the ratios to two decimal places, XXX) 2021 2020 Data table 2021 Current ratio 2020 2019 Balance sheet Cash 65,000 $ Short-term investments 14,000 91.000 23,000 Nel receivables 79,000 02.000 Inventory 09,000 72,000 50.000 66.000 Prepaid expenses 9.000 7,000 Tital tunt aseets 256,000 275,000 Aysh Totalment ab 75.900 132.000 60,000 50.000 45 000 9. 490.000 500.000 Cat goods d 273.000 263.000 16 Balushes Swatch Pre Done 0 FIL Question 3, E12-23A (similar to) Part 1 of 11 Requirements 1. Calculate the following ratios for 2021 and 2020. When calculating days, round your answer to the nearest whole number a. Current ratio b. Quick (acid-test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) t Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover 9. Cash conversion cycle (in days) (When calculating days, round your answer to the nearest whole number) 2. Evaluate the company's liquidity and current debt paying ability for 2021 H it improved or deteriorated from 20207 3. As a manager of this company, what would you try to improve next year? Print Done