Please help me find this one question- the acid-test/quick ratio and please include the excel formula. thank you.
+ Games Galore has summarized its condensed financial statements for the past two years. The Controller has asked you to compute the liquidity, solvency and profitability ratios for 2016. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Be sure to use 365 days in a year where necessary Cell Reference: Allows you to refer to data from another cel in the worksheet. From the Excel Simulation below, if in a blank cell, C6 was entered the formula would output the result from cell C6, or 134,000 in this example, Basic Math functions: Allows you to use the basic math symbols to perform mothematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). (asterisk sign to multiply), and/fforward slash to divide). From the Excel Simulation below, if in a blank coll"-B8B9* was entered the formula would add the values from those cells and output the result, or 895,400 irythis example. If using the other math symbols the result would output an appropriate answer for its function, . SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell SUMICA.C5,C6)" was entered the formula would output the result of adding those three separate colls, or 336,000 in this example. Simiorly, in a blank cell"-SUMC4:C6)* was entered the formule would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 336,000 in this example, AVERAGE function: Allows you to average any number of cells included in the formula. The syntax of the AVERAGE function is --AVERAGE(numbert number2...)" and returns the resuit of the mathematical calculation for the average of the arguments included in the formula. The arguments of numbert and number2 can be a numeric value or a cell reference. From the Excel Simulation below. If in a blank cell AVERAGE(B4,B5,C4,C5) was entered the formula would output the result of averaging these four cells, or 116,750 in this example A B 1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 2016 2015 4 Cash $ 185,000 $ 143,000 5 Accounts Receivable, Net 80,000 59,000 6 Inventory 104.000 134,000 7 Prepaid Insurance 11,900 5,880 8 Total Current Assets 380,900 341,880 9 Property and Equipment, Net 514,500 407,000 10 Total Assets $ 895,400 $ 748,880 11 12 Current Liabilities $ 85,300 $ 96,800 13 Long-term Liabilities 284,000 224,000 14 Total Liabilities 369,300 320.800 15 Contributed Capital 299,000 299,000 16 Retained Earnings 227,100 129.080 17 Total Stockholders' Equity 526,100 428,080 18 Total Liabilities and Stockholders' Equity $ 895.400 $ 748,880 19 20 Income Statement 21 Net Sales (all on account) $ 3,031,000 22 Cost of Goods Sold 1,949,000 23 Gross Profit 1,082,000 24 Operating Expenses 891,400 Sheet1 READY B D $ 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 30 31 Required: 32 Compute the following liquidity ratios for 2016, 33 3,031,000 1,949,000 1,082.000 891,400 190.600 14,500 176,100 47,000 129,100 $ 34 35 Current ratio Acid-test or quick ratio 37 Receivables tumover ratio 38 Average collection period 39 Inventory turnover ratio 40 Average days in inventory" 4.465416178 to 1 to ! 43.61151079 times 8.369350049 days 16.37815126 times 22.28578758 days 42 Compute the following Solvency Ratios for 2016. 43 Sheet1
