Instructions 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). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Total Points AB 1 Financial Statement Analysis 2 Calculate ratios; evaluate turnover, liquidity, and current debt-paying ability 4 The financial statements of Explorer News, Inc., include the following items: 2018 2017 2016 Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities Income statement: Net credit sales Cost of goods sold 77,000 $ 18,000 81,000 96,000 7,000 279,000 45,000 130,000 103,000 20,000 84,000 70,000 6,000 283,000 35,000 97,000 35,000 58,000 40,000 493,000 $ 280,000 507,000 278,000 20 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 21 Instructions tab you will be marked wrong. 22 23 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 24 turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). 25 a. Use the cost of goods sold in the formula for accounts payable turnover. 26 b. Use a 365-day year for calculations as needed. 27 c. Use cell references from prior calculations, if applicable. C D E F G H 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 2 Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 2018 2017 5. Current ratio 6 Quick (acid-test) ratio 7 Inventory turnover 8 Days' inventory outstanding (DIO) 9 Receivables turnover 10 Days' sales outstanding (DSO) 11 Payables turnover 12 Days' payable outstanding (DPO) 13 Cash conversion cycle 14