PART ONE
The financial statements of Big City News, Inc., include the following items: (Click the icon to view the financial statements.) Data Table Read the requirements. 2018 2017 2016 Requirement 1. Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the nearest whole number. Balance sheet: a. Current ratio. (Round the ratios to two decimal places, X.XX.) Cash 26,000 20,000 $ 17,000 Current ratio Short-term investments 29,000 2018 44,000 67,000 Net receivables Inventory 25,000 66,000 2017 91,000 11,000 69,000 3,000 b. Quick (acid-test) ratio. (Round the ratios to two decimal places, X.XX.) Prepaid expenses Total current assets Acid-test ratio 183,000 194,000 Accounts payable 30,000 65,000 15,000 2018 Total current liabilities 129,000 92,000 2017 Income statement: c. Inventory turnover and days' inventory outstanding (DIO). Net credit sales $ 509,000 Begin by calculating inventory turnover. (Round the ratios to two decimal places, X.XX.) 500,000 $ 270,000 Cost of goods sold 277,000 Inventory turnover 2018 2017 Print Done Now, calculate the days' inventory outstanding (DIO). (Use a 365-day year. Round your final answers to one decimal place, X.X.) The financial statements of Big City News, Inc., include the following items: : (Click the icon to view the financial statements.) - X Data Table Read the requirements NOW, calculate me uays inventory Outstanding (DIU). (use a 305-uay year. Round your mai answers to one uecimal place, ..) 2018 2017 2016 Days' inventory outstanding (DIO) 2018 Balance sheet: Cash $ 2017 20,000 $ 26,000 Short-term investments 17,000 29,000 d. Accounts receivable turnover. (Round the ratios to two decimal places, X.XX.) Net receivables 44,000 67,000 25,000 Acounts receivable turnover Inventory 66,000 2018 91,000 11,000 69,000 3,000 2017 Prepaid expenses Total current assets 183,000 e. Days' sales in average receivables or days' sales outstanding (DSO). (Round any interim calculations to two decimal places, X.XX, and use a 365-4 194,000 65,000 30,000 15,000 Accounts payable Total current liabilities Days' sales outstanding (DSO) 129,000 92,000 2018 Income statement: 2017 Net credit sales $ 500,000 $ 509.000 Cost of goods sold 270,000 277,000 f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover. Begin by calculating accounts payable turnover. (Round the ratios to two decimal places, X.XX.) Accounts payable turnover Print Done 2018 Choose from any list or enter any number in the input fields and then continue to the next
